Toronto FC acquired midfielder Jackson from FC Dallas in a trade Monday.
In return, Toronto sent a conditional second-round pick in the 2015 MLS SuperDraft and allocation money to Dallas.
The 25-year-old has 11 goals and 13 assists in 96 appearances with Dallas through four seasons.
"As we continue to re-shape the club's roster this off-season, we are excited to add a highly skilled, dynamic MLS midfielder, who at 25, is about to enter the prime years of his career," said Toronto FC general manager Tim Bezbatchenko.
"Jackson is a highly versatile player who brings with him the experience of nearly 100 MLS regular season and playoff games."
Jackson started his career with Brazilian club Sao Paulo FC in 2007, with whom he won the Campeonato Brasileiro Serie A title that year.