Recent Increase to Small Claims Court Jurisdiction: What You Need to Know About Ontario’s New Limit
As of October 1, 2025, Ontario’s Small Claims Court monetary jurisdiction has officially increased from $35,000 to $50,000 under Ontario Regulation 42/25 made under the Courts of Justice Act. The regulation also raises the appeal minimum from $3,500 to $5,000, broadening access to efficient, lower-cost dispute resolution for individuals and businesses across the province.
What the Change Means
This adjustment modernizes the Small Claims Court system, which last saw an increase in 2020 when the limit rose to $35,000. The change means that claims up to $50,000 can now be handled in the more streamlined Small Claims Court, where procedures are simplified and legal costs typically lower compared to the Superior Court of Justice.
Appeal Limit Growth
The appeal threshold has simultaneously risen to $5,000, meaning decisions in cases involving amounts below this figure can no longer be appealed as of right. This aims to strike a balance between judicial efficiency and fairness, reducing minor appeals that can delay resolutions.
Impact on the Landlord and Tenant Board (LTB)
Because the Landlord and Tenant Board’s monetary jurisdiction is tied to that of the Small Claims Court, the LTB’s claim limit has also increased to $50,000. This change allows for larger compensation awards or damage claims arising from tenancy disputes to be resolved directly within the LTB process, cutting down referrals to the civil court system.
Impact on Litigants and Legal Strategy
This reform offers strategic opportunities for both existing and new parties:
- Existing Small Claims cases may be amended to increase the claimed amount up to the new $50,000 limit.
- Superior Court actions falling below the new limit can be transferred to Small Claims Court, offering potential cost savings in filing fees, representation, and procedural timelines.
Access to Justice and Policy Context
Ontario’s move follows years of calls from the legal community for modernization. The increase promotes the “proportionate cost principle” embedded in civil procedure reforms, ensuring that the method of dispute resolution aligns with the size and complexity of the claim. By placing more mid-value cases in Small Claims Court, parties stand to benefit from faster hearings, simplified rules of evidence, and more flexible judgment enforcement mechanisms.
Key Takeaway
With Ontario Regulation 42/25 now in force, the Small Claims Court’s limit is officially $50,000, and appeals under $5,000 are excluded. The adjustment encourages cost-effective legal processes.
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