The former Blackpool player, who spent the first six months of the year on loan at Crystal Palace, was previously a target of Inter Milan.
Ince arrives at the KC Stadium as a free agent, and the England U21 international has signed a two-year deal with the Tigers.
Negotiations between City and Blackpool over a compensation fee for the 22-year-old will continue, and should the two clubs fail to come to an agreement, the fee will be determined by a tribunal
“At my age and at this time in my career I wanted to show what I could do in the Premier League,” Ince told Sky Sports.
“I have unfinished business at this level. I spent a great six months this year at Palace and like I say, this could hopefully be my first full season in the Premier League.
“Further down the line in years to come when I get older, maybe in my career if that opportunity to play abroad is still there then of course it will always be something on my mind that I want to do.
“Sometimes you have to go with your heart and to be given an opportunity to play again in the Premier League is a fantastic opportunity for me and one that I’m relishing.
“I’m no different to any other player, I’m going in to Hull City to work hard and try and grab one of those shirts.”
Ince came through the youth ranks at Liverpool at had a loan spell at Notts County before moving to Blackpool in 2011.
He has been linked with a return to Liverpool on numerous occasions in the past but a move back to Anfield has never materialised.
A statement from Hull City read: “We are delighted to confirm Tom Ince as our third major signing of the summer.”
Jake Livermore made a permanent move from Tottenham earlier this summer, while City also secured Robert Snodgrass for a club record fee of £6.5m.
Hull boss Steve Bruce is keen to expand his squad ahead of a potential European campaign in the coming season, with the club playing in the Europa League qualifiers after reaching the FA Cup final last term.