Everton were charged with breaching of spending rules after losses of £305.5 million between 2019/20 and 2021/22.
Premier League rules stipulate that no club can oversee losses of more than £105 million over three seasons, with charges brought against Everton in March.
An independent commission was instructed to assess the case against the Merseyside club, with a disciplinary hearing held last month.
The Premier League have now confirmed that Everton have been hit with a 10-point deduction, effectively immediately.
Sean Dyche’s side were 14th in the table with 14 points from their opening 12 games, but are now 19th with four – sitting above bottom-placed Burnley but level on points.
Everton have already confirmed their intention to appeal the decision, with the Times‘ Paul Joyce explaining that “such an appeal must be heard, and concluded, before the end of the season.”
