I am going with a 3inch front and 2 inch rear lift. From 265/65/17 to 275/70/17 tire on stock wheels. My concern is if the tire will rub. Has anyone done this?

Yes, and almost certainly yes. I have 265/70R17s on my truck and it rubbed quite a bit before backing the liner out a bit, trimming it, and slightly trimming the bumper as well. The corner will likely rub, as will the liner. Of course, it all depends on the tire too... If you choose a heavy AT tire (Mine were Nitto TerraGrapplers), you'll get more rub from the sidewall. If you choose an on-road tire, less so...

I just put 275/70/17's on mine last Friday. with FJ springs, 1.25" wheel spacers and daystar 2/1 leveling kit, I had to cut my fender liners, remove the mud flaps and trim the bumper. But it was so worth it!

Hey Mike...
I'm doing the same lift... OME but it might actually be around 2-2.5 inch lift (not doing spacers up front for the 3") with 275/70/17 on TRD pro rims. I assume it shouldn't rub much if at all (little trimming may be required). I went by the info below. Already have all the parts and tires here. Ran into a seized LCA bolt, so should have it on this weekend and can let you know if I have any issues. Where in NJ are you located? I'm in Ocean County.

4th Gen Suspension Options/FAQ

**************************Tire Size/Fitment**************************

Thanks to gaterose for providing the following information.
What does it take to fit x tire with x lift?
Front/Rear Lift Tire Size
Stock -
265/65R17
265/70R17* (except BFG A/T)

1/0
265/70R17* (31.6x10.4)
255/75R17 (32 x 10)

2/1
265/70R17
255/75R17

3/2
275/70R17 (32.2 x 10.8)
285/70R17† (32.6 x 11.2)
255/80R17* (33 x 10)

3/2 + 1-1.5" Body Lift
255/85R17† (34 x 10)
285/70R17†
305/65R17† (32.6 x 12)

* requires removal of mud flaps and probably minor trimming
† requires trimming and may require body mount chop (click here for details on body mount chop), upper control arms, and/or increased backspacing.

Add 5 to the middle number for 16" wheels, subtract 5 for 18" wheels (265/75R16=265/70R17=265/65R18)

The above assumes you're using stock wheels and no wheel spacers. Aftermarket wheels or wheel spacers will increase rubbing, more trimming will need to be done in order to fit the listed size.

Except this chart says no rubbing at 265/70R17. That's just not the case. I can almost guarantee there'll be rubbing with any kind of a tire. If I were you, I'd expect to trim some. Nothing drastic, but there will be rubbing -- enough so that needs to be dealt with.