In the US, "rubbing alcohol" usually refers to isopropyl alcohol, not ethanol, and it's medical-use purity. And you can absorb alcohol through your skin, so you wouldn't want toxic impurities in it.
That's different from "denatured alcohol", which is usually some combination of ethanol and things that are bad for you, and it's the version that's not food-grade, it's paint-thinner-grade solvent.
The strongest distilled ethanol-water combinations are about 96% ethanol, which has a lower boiling point than pure ethanol; if you want to get it any drier than that, you need to add some kind of other organic solvent such as benzene, so that you can boil off the alcohol-water-benzene mixture at an even lower temperature, leaving the ethanol and less or no water. But you're not normally going to do that for food-grade alcohols, because you don't want any remaining benzene, and because 96% is too strong to be actually drinkable anyway; maybe you'd want a stronger alcohol if you wanted to dissolve some flavoring that's less soluble with the remaining water content, but 96% is usually strong enough to do the job pretty well.