As an additional cost to cast this spell, pay X life.
All creatures get -X/-X until end of turn.
All creatures on the battlefield when Toxic Deluge resolves are affected. Ones that enter the battlefield or become creatures later in the turn are not.
If you cast Toxic Deluge without paying its mana cost, you'll still choose a value for X and pay X life. This is because it doesn't have {X} in its mana cost.