The 32-year-old Glasgow Warriors star confirmed the news in an Instagram post on Monday.
Jackson featured 33 times for his country and declared he had lived his "childhood dream".
It is not the fairytale ending I may have dreamt about, but I want to say a huge thank you to everyone who has been part of my 14-year. I have achieved more than I could ever have dreamed of, but it is now time to embrace a new challenge. I have been so fortunate to live out my childhood dream of playing rugby not just professionally but for my country. It has been a journey that has allowed me to travel the world, make some incredible friends and without doubt has given me some of the happiest days of my life. I have played at some amazing clubs, Wasps, Harlequins and of course two stints at Glasgow Warriors, which will always hold a special place in my heart. The supporters at all these clubs have been immense and will be one of the things I will miss most. There are many people that have helped me along the way, from school and mini rugby coaches, Sean Lineen helping me sign my first pro contract, the other coaches, medical teams, back room staff that I have worked with throughout the years. The team at Red Sky Management that have been through it all with me, Rowen and Rhona you have been a major part in shaping my career on and off the field. My family who have been without doubt my biggest and best supporters. Your support has meant everything. My wife, Kirstin; I could not have shared it all with a better sidekick, along with my family you have been my biggest source of strength and laughs throughout the dark times and the good! Throughout my playing career I have learnt a lot about how to improve my performance and the importance to me of teamwork, accountability, communication and thriving under pressure. Within team culture there is an emphasis placed on the value of relationships and this, along with hard work will always be the foundation of how I move forward as well as understanding that it’s important to be true to myself every single day. As I look towards a potential new career in the drinks industry, building on my experiences over the last few years co-founding Garden Shed Drinks, I will take all these learnings with me. It has been one hell of a ride. Cheers (with a Garden Shed Gin in hand of course!) Jacko
He is now set to pursue a new career in the drinks industry.
"It is not the fairytale ending I may have dreamed about, but I want to say a huge thank you," he wrote on Instagram.
"I have achieved more than I could ever have dreamed of, but it is now time to embrace a new challenge.
"I have been so fortunate to live out my childhood dream of playing rugby, not just professionally but for my country.
"It has been a journey that has allowed me to travel the world, make some incredible friends and, without doubt, has given me some of the happiest days of my life.
"I have played at some amazing clubs: Wasps, Harlequins and, of course, two stints at Glasgow Warriors, which will always hold a special place in my heart. The supporters will be one of the things I will miss most."
Jackson debuted for Scotland in 2010 against New Zealand and went on to score 37 points on the international stage.
Having started out with Glasgow, he returned to the club in 2017 following spells with Wasps and Harlequins.