In a statement Shurman thanked supporters and said the decision to resign came after lengthy reflection and discussion with his family.
"Having now carefully considered my situation for several months, I have concluded that continuing with my political career would be a mistake for me."
Shurman served two terms in the Ontario legislature, winning his seat in the 2007 and 2011 elections.
Party leader Tim Hudak removed Shurman as the party's finance critic last fall when it was learned he collected a $20,000 housing allowance after moving to Niagara-On-The Lake while keeping an apartment in Toronto.
Collecting the housing allowance did not violate any rules and Shurman agreed he would stop collecting the housing allowance and pay for his own rental space while the rules were reviewed.
CBC provincial affairs reporter Genevieve Tomney Tweeted that Shurman's departure leaves "big shoes" to fill for the PC party:
Hudak released a statement Tuesday praising Shurman's work and calling him "one of the finer communicators in the Legislature."
“We wish Peter well in his future endeavours, and thank him for his determination and hard work," said the statement.