The 23-year old becomes Britain's most expensive goalkeeper after the two clubs agreed a fee of £25m, which could rise to as much as £30m depending on individual and team performances.
Pickford attracted strong interest from a host of English clubs after a stellar debut season at Sunderland.
Speaking to the club's website, Pickford expressed his excitement on moving to Goodison Park.
He said: "It's great to sign for the club.
"It's a great club, a massive club and I think it's a great opportunity and the right time for me to come to Everton and show what I can do.
"This is an exciting time for the club and for me, too, with the ambition being shown. I just want to be the best I can be to help."
| #EFC have signed goalkeeper Jordan Pickford for a Club-record fee on a 5-year deal! #WelcomeJordanhttps://t.co/sozzcEO86rpic.twitter.com/2bSCRfL0Wa
— Everton (@Everton) June 15, 2017