New York outscored Toronto 32-20 in the second period to cut a slim 34-33 first quarter deficit and led 65-54 at the half.
Toronto made it a contest with a 13-7 spurt opening the fourth period, but never regained the lead.
Both David Lee and Quentin Richardson scored 16, Jared Jeffries had 14, Nate Robinson scored 13, and both Chris Duhon and Al Harrington scored 12 -- with Lee and Harrington compiling 10 rebounds apiece for the Knicks, who had lost 10 of their last 11 games but still have a shot at making the playoffs for the first time since 2004.
Chris Bosh led Toronto with 31 points and 14 rebounds. Andrea Bargnani scored 18 with seven rebounds for the Raptors, whose season-long six-game winning streak ended.