Exhaust
 

I live in a area with no emissions or inspections. I was wondering if I can remove the cat and o2 sensor and just have a magnflow muffler on 2.25 pipes on a 22re thanks for any input.

keep the 02, you'll be fine with a 2.25" or 2.5" pipe.
ran that setup (2.5") on my 22re with a header and cold air intake before i went with a 3.4.

By doing this will this help with my mpg and hp. I'm only getting 13mpg all highway driving!!!

only 13 mpgs on highway sounds like you need to check other parts of your engine.. perhaps a proper tune up..?

Keep the O2 sensor. Removing it would just make your MPG worse. To me, it sounds like it needs to be replaced. As for everything else, the cat removal, 2.25" piping and magnaflow muffler sounds like a good plan.

Thanks I'm new to toyotas what the best plugs and o2 for a 22re and also dist cap?

OEM spec.