The 31-year-old was convicted of drink driving earlier this month, prompting an investigation from Wigan.
The Australian-born forward hasn't played since his conviction and has now left the Warriors by "mutual consent," and will return home to Sydney.
Wigan Warriors Executive Director, Kris Radlinski: “After a series of conversations with Taulima, it was mutually decided that he will leave the club with immediate effect after five-years at Wigan Warriors.
"Taulima and his family expressed their wish to return to Sydney immediately to be closer to their extended family and we have facilitated that wish.
"We’d like to thank Taulima for his efforts at Wigan and we wish him and his family well for the future.”
The forward left Wakefield for Wigan ahead of the 2015 season, after making 26 appearances for Trinity in 2013 and 2014.
He played 132 times for the Warriors during his four and a half year spell.
“I would like to say that I am grateful to Wigan Warriors for the opportunity that they have given my family and I for the past five years to live out my passion of playing rugby league," said Tautai.
"After achieving great success at the Warriors I feel that the time is right for me to take my family home.
“This decision has not been an easy one to make but I feel it is the right decision for my family, and I am very appreciative of the compassion shown by Ian Lenagan and Kris Radlinski whilst we have reached this agreement.”
The forward was the third Wigan player to fail a breathalyser test in eight months, when he was stopped by police after his appearance at Magic Weekend in May.
Full-back Zak Hardaker was given a 20-month driving ban in October after driving over the limit while Craig Mullen was banned for 12 months in April.