Wagner and singer Gavin DeGraw were the bottom two competitors after judges' scores and audience votes were combined. After Monday night's performance show, Wagner and four other celebrities were tied for the bottom spot on the leaderboard, having scored 24 points for their respective performances.
Ironically, judges said Wagner's Monday night samba had been his best performance so far in the competition.
A smattering of boos met co-host Tom Bergeron's announcement that Wagner would leave, and Wagner seemed surprised.
"It's been such a great ride. I love Anna, I'm so grateful for her …," Wagner said, referring to his professional dance partner, Anna Trebunskaya.
Wagner has starred in soap operas including "General Hospital" and "The Bold and the Beautiful," and also topped the music charts with the memorable 1980s hit, "All I Need."
The 52-year-old is also top celebrity golfer.
Welsh opera singer Katherine Jenkins has been at the top of the score board since the start of the show's season 14.
Tonight's show featured live performances from the singer Seal and the group Rascal Flatts.
Bergeron revealed tonight that the rules of the show will change. After next week, and for the three weeks that follow, the two celebrities with the lowest scores will do a simultaneous dance-off for judges, and the three-judge panel will decide who goes home.
The dancer in the bottom spot after judges' scores and audience votes are combined has traditionally gotten the boot.
Tennis star Martina Navratilova was the first celebrity eliminated from the show.
Returning next week to perform are DeGraw, Disney star Roshon Fegan, "Extra" co-host Maria Menounos, NFL player Donald Driver, actress Melissa Gilbert, Jenkins, R&B legend Gladys Knight, telenovela star William Levy, "The View" co-host Sherri Shepherd and "Family Matters" star Jaleel White.