I have an 04 2wd xlt i want to level it what hight would you recommend what tire size would look good does leveling a truck effect mpg or towing capabilities

 

A 2.5" level will allow you to fit 33s easily and depending on what tire you choose you can expect a good 3 mpg drop. Your towing capabilities will be the same except your truck will sit nose high with a lot of hitch weight.