Chris Bosh had 29 points and 10 rebounds, Rasho Nesterovic added 18 points, and the Raptors beat the Knicks 103-95.
"It's disappointing," Knicks coach Isiah Thomas said. "We definitely had high hopes coming into the season. I always thought we would be a playoff team this year. I'm disappointed that we're not."
New York drops to 7-28 on the road and 20-52 overall.
Anthony Parker scored 15 for the Raptors, who won their second in a row after losing 11 of their previous 14.
Starting for the second straight game, Toronto guard T.J. Ford finished with 10 points and nine assists.
"We had a tough couple of weeks and we're trying to get things turned around," Ford said.
Toronto's win, coupled with Philadelphia's loss to Phoenix, moved the Raptors back into sixth place in the Eastern Conference with 10 games remaining.
Andrea Bargnani scored 12 as the Raptors handed New York its eighth straight loss in Toronto. The Knicks' last win north of the border came March 5, 2004.
Jamal Crawford scored 26 and Jared Jeffries had a career-high 21 points and 10 rebounds for the Knicks, who have won just two of 15. Quentin Richardson added 20 points and 10 rebounds while David Lee had 15 and 12 for New York.
"You want to be in the playoffs but unfortunately it won't happen this year," Crawford said. "Now you get the young guys some experience and hopefully ruin some dreams on the other side.
"Coming into this year, we were as deep a team as anybody out there and we added Zach Randolph," Crawford added. "On paper I thought we'd be really good but unfortunately it didn't go our way."
Randolph missed the game because of flu-like symptoms.
Toronto went 2-8 in early March when Bosh sat out for 10 games with a sore right knee. He's averaging 19.8 points in five games since returning Mar. 19 against Miami.
"I've been working hard in practice trying to get my legs back," Bosh said. "I feel that I can really help this team out and I'll be one hundred per cent when it counts."
Toronto has gone 3-2 with Bosh back on the floor.
"He brings a different dynamic," Crawford said of Bosh. "He's quicker than most bigs he plays against. If you double team, you've kind of got to pick your poison because they've got shooters all around the floor. They can spread you out a little bit."
Leading 32-23 after the first, Toronto widened the gap to 47-30 at 5:43 on a follow dunk by Bargnani and a 3-pointer by Carlos Delfino. Two baskets by Jeffries and a pair of 3-pointers by Crawford keyed a 14-0 New York run over the next five minutes before a Bosh jumper gave the Raptors a 49-44 edge at the intermission.
A rare 3-pointer by Bosh, his fifth of the season, at 3:22 of the third, gave Toronto a 71-59 edge, and the Raptors took a 76-68 lead into the fourth.
"Toronto did a good job of keeping us at bay," Thomas said. "Whenever we tried to make a run, Bosh was there to answer it."
Referee Michael Smith was checked by medical staff after crashing into a courtside advertising board in a collision with Richardson late in the third. Smith was able to finish the game. ... Nesterovic has reached double figures in scoring in eight straight games. ... Toronto dressed forward Linton Johnson, who signed a 10-day contract Thursday, but he did not play.