The ban will come into effect early next year, Prime Minister Edi Rama said after meeting with parents' groups and teachers from across the country.
"For one year, we'll be completely shutting it down for everyone. There will be no Tiktok in Albania," Rama said.
Rama has blamed social media, and Tiktok in particular, for fuelling violence among youth in and outside school.
His government's decision comes after a 14-year-old schoolboy was stabbed to death in November by a fellow pupil. Local media had reported that the incident followed arguments between the two boys on social media. Videos had also emerged on TikTok of minors supporting the killing.
TikTok said it was seeking "urgent clarity" from the Albanian government.
"We found no evidence that the perpetrator or victim had TikTok accounts, and multiple reports have in fact confirmed videos leading up to this incident were being posted on another platform, not TikTok," a company spokesperson said.
Several European countries including France, Germany and Belgium have enforced restrictions on social media use for children, by requiring parental permission for teenagers up to certain ages.
The Albanian government’s decision triggered strong reactions from the opposition. Democratic Party MP Ina Zhupa wrote that the shutdown of Tiktok is a dictatorial decision and a serious act against freedom of speech and democracy.
The Tiktok platform is increasingly being used by politicians in election campaigns around the world. A few weeks ago, Romania’s first round of presidential elections was cancelled due to violations of the law on Tiktok by one of the candidates.
Albania’s parliamentary elections are scheduled to be held in May next year.
Prime Minister Rama has shown strong support for the country’s accession to the EU.