The Labor member for Clark intended to formally resign to Governor Kate Warner on Thursday.

"This has been a difficult decision that I have not made lightly," Mr Bacon said in a statement.

"After nearly 10 years in politics, I have decided that it is the right time to take on a new challenge."

Mr Bacon said he was proud of his time as tourism and finance minister while in government and for his contribution to making Tasmania a winter holiday destination.

Labor leader Rebecca White paid tribute to her colleague, who was elected the same year she was.

"Scott and I entered the Parliament together in 2010. Not only has he been a very capable Parliamentary colleague and a dedicated local representative, I also count him as a very good friend," she said in a statement.

"Politics is a tough business, particularly with a young family, and I fully respect Scott's decision to refocus his priorities."

Tasmanian Premier Will Hodgman said Mr Bacon had contributed significantly to public life and was a strong advocate for the people and organisations in his electorate.

"Despite our political differences, I have always appreciated Scott's passion, commitment to his values, and his dry sense of humour," he said in a statement.

"I wish him the very best for the next chapter in life."

Ms White said she would be making contact with all of Labor's unsuccessful Clark candidates in the coming days ahead of the recount and is confident in whoever is elected to fill Mr Bacon's vacancy.

Under Tasmania's Hare-Clark system, Mr Bacon's votes will be recounted to determine which unsuccessful candidate will replace him in parliament.

Former Labor MP Madeleine Ogilvie and former ABC radio broadcaster Tim Cox are favourites to replace him.

Mr Bacon entered parliament in 2010, six years after the death of his father Jim Bacon, who was premier of Tasmania from 1998 to 2004.

He became a minister in his first term in parliament, as part of the Labor-Green minority government.

Australian Associated Press