Winners of the last four Premier League titles, the English champions have won just once in their last 13 games in all competitions.
Bernardo Silva put City in front early on before Iliman Ndiaye salvaged a point for the Toffees.
City climb to sixth but could end the day five points adrift of the top four. A hard-fought point for the visitors edges Everton five clear of the relegation zone in 15th.
City boss Pep Guardiola conceded ahead of the game that his side are at risk of failing to qualify for the Champions League for the first time in 15 years.
The top four automatically qualify for Europe's premier club competition but fifth is likely to be enough this season due to a strong start by English clubs in European competition.
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