Since being drafted in 2017, the Yeronga South Brisbane product has played 42 games across three clubs.
The 30-year-old believes that after seven seasons, the time is now right for her to move on.
"I'm so grateful for the opportunities and friendships that footy has provided me. I want to thank my family, my partner, my amazing teammates and all the coaches and staff members at Hawthorn, St Kilda and Brisbane."
McCarthy was at her best with the Lions, where she was a leading goalkicker and All-Australian in her first year.
In 2019 she joined expansion club St Kilda for two seasons before venturing to the Hawks for season Season Seven.
Despite only playing three games in brown and gold, McCarthy was grateful to be given an opportunity.
"While my journey at the Hawks has been short, I have absolutely loved my time at the club," she said.
"I cannot thank Bec Goddard, Justin Reeves, the support staff and everyone involved in the club enough for their guidance and support.
"Hawthorn is an amazingly professional club and I know the women's team will continue to grow in the years to come.
"I will be smiling from the sidelines as I watch history continue to unfold."
McCarthy retires with 18 goals to her name, 16 of which came during her time with Brisbane.