Ranked ninth in the world, Toms had five birdies and a pair of bogeys to reach 12-under 201 at Kingsmill Resort, where he defeated Mike Weir in a playoff last year.
Before a second-round 70, Toms opened the tournament with a 64 that included four birdie putts of at least 25 feet and was just one stroke off the best round of his career.
Toms is having the season of his career. He has won a pair of events, including the PGA Championship, and a career-best $2,677,267, which puts him fifth on the money list.
Toledo is in an unlikey position -- the final group on Sunday. He is winless in five seasons on tour and has not been in the top 10 in 32 starts this year.
A 68 put Toledo alone in second at 10-under 203.
There are five events remaining for also-rans to finish in the top 125 on the money list and retain their tour cards. Lancaster is 135th and Michael Muehr, who is tied for seventh at 205, is 141st.