Google's John Mueller said on Twitter "we don't have a concept of toxic domains." It was in a reply about a third-party SEO tool saying some of the links to his site are low quality and maybe toxic.
Google said previously most site do not have toxic links. So I guess there is some sort of "concept" around a toxic link but I doubt Google classifies those links internally as toxic.
PageRank by definition gives different weights to links based on the reputation of those links. But could those weights be negative? I doubt it, not since Penguin 4.0.
In any event, sure, I think with manual actions, some links can be "toxic" in terms of hurting a site from ranking. But with Penguin 4.0, Google now algorithmically just ignores bad links to your site.
Google: We Don't Have A Concept Of Toxic Domains
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