I try to use prevention and natural consequences rather than time out or other punishment. I also do not use stickers or charts or whatever. Firm boundaries and consistency are really important. Time out definitely sounds like it's not the thing for him.
I do not accept that sort of disrespect. If DD talks back or whatever, I remind her (calmly) that we don't speak like that and don't engage the discussion. If it continues, she'd need to leave until she could be kind. If toys were thrown, they'd be put away and she wouldn't have access to them at all until she could use them correctly. If this is an ongoing problem, I think I would put all the toys away and give them to him one at a time when he wanted to play, but he wouldn't have access to them. Spitting at me, wow, if that ever happened, she'd need to be removed. DD did go through a very short hitting (me) phase earlier this year (she's 4) and I calmly told her we don't hit, it hurts, and then she needed to go upstairs until she could be gentle. I had to do this a couple times, but she got the message and it stopped. I don't do time out, there wasn't some arbitrary time she needed to go to her room or whatever, but I made it clear that she could not be with people if she wasn't gentle and as soon as she could be gentle she could come back.
As for the prevention I think it is still a value at this age. I think many kids can keep it together at school but at home they just lose it after spending all day keeping it in check. So, I'd probably make sure he had a healthy snack as soon as he got home (or in the car on the way home), make sure the house was calm and he got MY attention when he first came home, rather than rushing around, making dinner or whatever. He may need some down time and connection time with you after being away all day. Or if they don't get a lot of motor breaks/recess at school, maybe he needs to run around the yard as soon as he gets home. Try to keep a flow to the daily activity that he can expect every day.
I don't go for rewarding good behavior. I think it can create a pay out system and lead them to always expect payment for what they should already be doing. I did briefly offer a sort of reward, if you cooperate we will do X, I did it one day to get her to cooperate with an appointment, but she quickly assumed that good behavior = reward. I immediately stopped that. No, you cooperate bc that is your responsibility, not for a reward. The problem is that if they see it as payment so if I am good I get X, but today I just feel like being bad, I don't feel the need for X. They don't get any intrinsic value from being good. It can also work the same way with punishment. Punishment can be the pay for the bad behavior, and maybe they don't mind the punishment. Making bigger and worse punishments don't stop that dynamic.
It sounds like he really is asking for attention. Negative attention is better than no attention. That's where being very calm and matter of fact in your reactions comes in. If you freak out and engage when he is talking back and spitting, well he's got your attention, he is in control. If you remain calm, enforce the boundary and are consistent about it, it loses the benefit he is getting from it. So if you can meet his needs for attention he may be less likely to act out in these ways.
You also may want to look at what he is eating. Trying to break toys sounds a bit extreme. If he is on a big sugar crash cycle all the time or if he has sensitivities to food additives, those things can really affect behavior.