"After 20 great years representing my community I will be stepping down as MP on March 16. It has been an honour to serve," Baird tweeted on Wednesday.
Baird, who represents the riding of Ottawa West-Nepean, resigned from cabinet last month, telling the House of Commons he would also be stepping down as an MP.
In an interview last month with CBC's chief correspondent Peter Mansbridge, Baird said he didn't want to become one of the "lifers" in federal politics, which is why he made the decision to leave politics to pursue career opportunities in the private sector.
So far, Baird has not indicated whether he has a new job lined up.
Baird, 45, has been in politics most of his adult life. He was first elected as an MP in 2006 after a decade in provincial politics in Ontario, where he served in the cabinet of Mike Harris.