As a result, her West Coast tour that was supposed to begin Aug. 30 in Boise, Idaho, has been cancelled, Billboard reported.
DiFranco's spokesman issued a statement saying she risks "permanent nerve damage to her hands" if she continues to perform.
DiFranco's last concert will be July 31 in Floyd, Va.
During her hiatus DiFranco will work on several recording projects as well as her next album expected next year on her label, Righteous Babe.
2014: The Year in Music [PHOTOS]