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The deal is worth a reported £250,000 and breaks the current record which was set by Lauren James' £200,000 move from Manchester United to Chelsea in 2021.
England has signed a three-year deal at Spurs and will wear the number 19 shirt.
The 28-year-old leaves Chelsea after seven years at the club, having scored 74 goals in 164 appearances for the Blues where she won nine major trophies.
England, who has scored 11 goals in 21 games for the Lionesses, is keen to gain more regular football after losing her place in the England squad, with the World Cup coming up in the summer.
She said on Twitter: "My next chapter. I'm so excited to join Spurs Women.
"Buzzing to meet up with the girls and get started at this great club. Let's write some history together!"
Speaking about England's departure, Chelsea boss Emma Hayes said: "Beth has given tremendous service to the club.
"She has contributed to all of our success over the past seven years and she leaves a winner and a Chelsea legend.
"We wish her the very best for the next stage of her career."
England joins a Tottenham side that are on a four-match WSL losing streak and have scored just 11 goals in nine league games, with eight of those coming in the same match in the win over Brighton.
Why England's move to Spurs makes sense for all parties
Sky Sports News reporter Anton Toloui breaks down the most expensive transfer in Women's Super League history, starting with Tottenham's perspective...
The north London side's season needs a spark and a high-profile No 9 is the flashiest way to do so.
Spurs' form in recent weeks has been sub-par, they're on a four-game WSL losing streak and haven't scored a single goal during that period.
Speaking to Tottenham head coach Rehanne Skinner before the season, the club was optimistic it could improve on its fifth-place finish last season mainly thanks to addressing the issue of squad depth in the summer.
Now Spurs need a star to hitch their hopes to and England fits the bill.
Don't be fooled by the reported £250,000 price tag. Most of that won't be paid up-front and the figure is the maximum the deal can be worth after performance bonuses.
The transfer market in women's football is evolving fast, soon a quarter-of-a-million pounds for a Euros-winning striker won't seem much at all.
WSL transfers: Who could move, who could stay & contract updates
The Women's Super League might currently be on its winter break, but with four teams still in the race to win the title, and plenty of drama unfurling at the bottom of the table, this month's transfer saga will be a compelling one.
Here's how the January window is shaping up away from England's move.
Chelsea are still yet to make any acquisitions of their own after a busy summer, packed with new signings.
Arsenal are looking for attacking replacements, with both Beth Mead and Vivianne Miedema sidelined with long-term ACL injuries.
Manchester United are proving to be far busier than their neighbours, with all focus on making a real splash in this winter's transfer window.
Manchester City are not looking for any more short-term signings. Having lost Lucy Bronze, Georgia Stanway and Kiera Walsh this past summer, the emphasis seems to be on an internal rebuild - or as Gareth Taylor says, 'roll with the punches'.
Liverpool have already reunited with their former captain Gemma Bonner, who returned to the club for a second spell on January 1.
Follow the January transfer window with Sky Sports
Who will be on the move this winter? The January transfer window opened on Sunday January 1, 2023 and closes at 11pm on Tuesday January 31, 2023.
Keep up-to-date with all the latest transfer news and rumours in our dedicated Transfer Centre blog on Sky Sports' digital platforms. You can also catch up with the ins, outs and analysis on Sky Sports News.