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I want to add a little more height to my stock Taco but not sure if it is better to go with a leveling kit or save up for a lift kit. Would a leveling kit require new suspension? or can it keep the current suspension?
Depends on what you want to use it for Eddie. Spacers and blocks suck, plain and simple... there are very few folks out there who would tell you otherwise. That being said, if your truck is just a pavement princess and you don't take it off road or particularly care about ride quality, a spacer lift "leveling kit" may give you the look you're going for. For some people, that's all that matters, and if you're one of them, then that's totally fine. Those looks do come at the expense of parts longevity, ride quality, and performance.
If you want the next step up from that, you should be looking at an OME, Bilstien, or Eibach type of a setup with AALs in the rear, which will run you significantly more but actually improve performance over stock in most cases and produce improved handling and ride quality over stock both on- and off-road.