Yes a 16" wheel will fit, and with stock suspension you can fit a 32" tall tire (33" with fender trimming).
As far as what wheels will fit...
'80-'95 4WD Pickup'84-'08 4-Runner'07-current FJ Cruiser'69-'97 Land Cruiser'01-'07 Sequoia'93-'96 T-100'95-'04 Tacoma 4WD and Prerunner'05-'08 6-lug Tacoma'99-'06 Tundra
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