She told Nine News on Wednesday the past three weeks had damaged her reputation and she no longer thought she could hold the seat of Lindsay in Sydney's west.
"It is an incredibly sad day for me. I have just derived immense pleasure from being able to represent my community, but enough is enough," she said.
The first-term MP accused a NSW Labor investigation of being compromised by leaks.
Lawyer John Whelan has been investigating the complaints of Ms Husar's 22 former staff, with his report due to be handed to NSW Labor by Friday.
They include claims she bullied and sexually harassed staff in her electorate office, and diverted Labor funds into her personal bank account.
Ms Husar hit back, with documents published in Fairfax Media claiming other NSW Labor MPs had deliberately excluded her from events and were undermining her.
In the Nine interview she said she "threw up" when she heard an allegation about exposing herself to Labor frontbencher Jason Clare during an incident in his office.
Ms Husar and Mr Clare say the incident did not happen.
"When I heard that in the initial assessment I threw up," Ms Husar said.
"It doesn't just allege that I did something wrong to a grown up, but there was a child in the room, and that's absolutely the lowest part of what's gone on here."
She thanked Labor leader Bill Shorten for backing her.
"He's always backed me, always believed in me, and will continue to believe in me, that won't change. He knows the person I am, the good that I've done."
