Tarling was part of a seven-rider breakaway that had established a 30-second lead over the peleton as the race resumed in heavy rain after Monday’s second rest day.
The Welshman slid out on a roundabout, with his bike going from under him and his body hitting the barrier.
Ineos Grenadiers confirmed the 2023 European time trial champion would not continue.
“Josh Tarling has unfortunately had to abandon the Giro d’Italia following a crash on today’s stage,” the team said on social media.
“Our team doctor is with him and he is undergoing further assessment. We will provide an update on his condition as soon as possible.”
Tarling started stage 16 in 101st place – more than two hours behind race leader, Mexican Isaac del Toro (UAE Team Emirates).
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