Jurgen Klopp's side needed one victory to seal the league but City's failure to win means they cannot be caught.
It is Liverpool's 19th top-flight title and their first since 1989-90.
Despite being urged to "stay home" by the city's metro mayor because of coronavirus, thousands of fans gathered at Anfield to celebrate.
Many of the supporters who congregated at the club's ground wore face masks and some lit flares.
A number of Reds players, including goalkeeper Alisson, defender Virgil van Dijk and midfielder Alex Oxlade-Chamberlain, celebrated together after watching the Chelsea-City game.
Klopp, wearing a Liverpool shirt and clearly emotional, told Sky Sports: "I have no words, it's unbelievable.
"It's much more than I ever thought would be possible, becoming champion with this club is absolutely incredible.
"I haven't waited 30 years, I have been here for four-and-a-half years, but it is quite an achievement, especially with the three-month break because nobody knew if we could go on.
"I know it is difficult for people in this moment but we could not hold back. We will enjoy this with our supporters when we can."
As the global pandemic disrupted life in England and led to the suspension of the Premier League for three months, Reds supporters endured a nervous wait to see how the season would be concluded, with some early suggestions it might have been declared null and void, thus wiping their remarkable efforts from the record books.
Thankfully for them, that did not come to pass, and the Premier League's return this month enabled them to cap their stunning success.
However, because of the measures put in place in response to the virus, the Reds will not be able to celebrate their long-awaited success with their supporters immediately, at least not in the traditional sense.
As with Wednesday's impressive 4-0 win over Crystal Palace, when they next play at Anfield - against Aston Villa on Sunday, 5 July, and for their two other remaining home games - it will be behind closed doors.
As things stand it also seems unlikely they will be able to partake in any of the usual public events in Liverpool, such as an open-top bus parade around the city.
BREAKING: Liverpool are crowned Premier League champions 19/20
June 25, 2020
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