The 19-year-old penned a "long-term" deal after impressing in League Two last season.
He scored 13 goals in 60 senior games for Northampton and becomes the club's fourth summer signing.
Newcastle head into the new season with fellow forward Aleksandar Mitrovic, defender Chancel Mbemba and wide man Georginio Wijnaldum also arriving at the club.
"The players here are a great standard and I can't wait to get going and show what I'm all about," Toney said.
"Being a young lad who is scoring goals in the Football League was a great thing.
"Now I want to progress here and eventually do it in the Premier League.
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