A toe optimization system for a vehicle with first and second rear wheels defining a rear toe angle. The vehicle includes a plurality of sensors and first and second actuators operatively connected to the first and second rear wheels, respectively, for varying the rear toe angle. A controller has a processor and tangible, non-transitory memory on which is recorded instructions for executing a method for controlling the rear toe angle. Execution of the instructions by the processor causes the controller to select one of a plurality of vehicle states. Each of the plurality of vehicle states has a respective toe setting. The controller is configured to actuate the first and second actuators to vary the rear toe angle to the respective toe setting. By actively controlling the rear toe angle, the agility and stability of the vehicle can be optimized according to the specific vehicle state.
