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How to fairly judge evil actions in a role playing game like DnD?

I’ve been DM’ing for a few years now, and this question still confuses me. I have a slightly higher moral compass than most of my friends due to how I grew up, so I made a house rule for all games I DM to ban all ‘evil’ acts at the table. When asked by my players what I consider evil, the only response I can come up with is to use your common sense and don’t do what you would normally do in real life. Don’t murder, don’t torture, etc. Mostly the rule was put in place to discourage messing with the party, but while I haven’t really needed to enforce the rule too often, there have been times where I’ve gotten into arguments over what constitutes as ‘evil’. -Do I just need to set my standards lower and just accept that DnD is just a game, like my friends keep telling me? Or should I listen to my heart and try to keep my players on the straight and narrow due to my own sensibilities?