Peter Taylor's side trailed to a first-half penalty from Nicolas Castillo but equalised after the break to keep hopes of advancing to the latter stages of the World Cup alive
Tottenham striker and former Norwich loanee scored the all-important goal as Peter Taylor's side picked up a point against the group leaders.
England started brightly as Everton youngster John Stones missed the target with a header before Kane called opposition goalkeeper Dario Melo into action.
But Chile went in front when West Ham full-back Danny Potts brought down Manchester United's Angelo Henriquez in the box, and Castillo beat Old Trafford shot-stopper Sam Johnstone from the penalty spot.
Kane equalised with just over an hour played, however, beating Melo from just outside the box with a neat striker after good work from Everton's Ross Barkley.
England pressed for a winner but second-half substitute Alex Pritchard saw an effort saved by Melo, before Chile nearly stunned their opposition with a Bryan Rabello thunderbolt, but the long-range shot crashed against the bar.
The result leaves England, who are without a win in the competition for 15 years, with a chance of qualifying from Group E, though their required result depends on the outcome of Iraq's clash with Egypt.