Small Claims Court Now Covers Up to $50,000 in Ontario: What It Means for You

If someone owes you money — an unpaid invoice, a deposit a landlord won't return, wages a former employer never paid, or the cost of repairing damage someone caused — Ontario's Small Claims Court is the place most people turn to. As of October 1, 2025, that court can handle a lot more. The maximum amount you can sue for there jumped from $35,000 to $50,000. If you have a dispute in that range, this change may decide which court your case belongs in and how much it costs you to pursue.

What actually changed

The increase came through Ontario Regulation 42/25, which amended the long-standing rule setting the Small Claims Court's monetary jurisdiction. Two numbers moved on October 1, 2025:

• The claim limit rose from $35,000 to $50,000 for new claims.
• The threshold for appealing a Small Claims Court decision to the

Divisional Court rose from $3,500 to $5,000.

It is the first change to the limit since 2020, when it went from $25,000 to $35,000 (and before that, it sat at $25,000 from 2010). The province described the increase as a way to give people a faster, simpler and cheaper forum for mid-sized disputes that previously would have been pushed into the Superior Court of Justice — where the rules are more complex and the costs much higher.

Why this matters for everyday disputes

Small Claims Court is built to be used without a lawyer. The forms are plainer, the rules are lighter, and a paralegal or the parties themselves can present the case. Superior Court, by contrast, involves formal pleadings, discoveries and motions that can make a $40,000 claim cost more to litigate than it is worth.

By lifting the ceiling to $50,000, the change brings a whole band of common disputes into the simpler court, for example:

• Unpaid wages, commissions or a short-notice termination that falls under

the $50,000 line.

• A contractor or client dispute over work that was done badly or never

paid for.

• A returned deposit — last month's rent, a security deposit on a purchase,

or a cancelled service.

• Property or vehicle damage where the repair bill lands between $35,000

and $50,000.

If your claim is worth more than $50,000, you generally still have to go to the Superior Court — unless you choose to abandon the portion above $50,000 to keep the case in Small Claims Court. That can be a reasonable trade-off when the savings in time and cost outweigh the amount you give up, but it is a real decision with consequences, so think it through (or get advice) first.

How a Small Claims case generally flows

A few practical points to keep in mind

Winning is not the same as getting paid. A judgment is a court's confirmation that you are owed the money — collecting it is a separate step. If the other side does not pay voluntarily, you may need enforcement tools such as garnishing wages or a bank account. Factor that reality in before you sue.

Watch your deadlines. Most claims in Ontario are subject to a two-year limitation period that usually runs from the day you knew (or should have known) about the loss. Wait too long and the court can refuse to hear an otherwise good claim. The higher dollar limit does not change these deadlines.

The limit applies per claim, not per incident in unlimited amounts. You cannot split one $80,000 dispute into two $40,000 claims to squeeze under the ceiling — courts look unfavourably on that. The $50,000 figure also does not include the interest and costs the court may add on top.

Older cases. If you filed before October 1, 2025, or have a Superior Court matter that now fits under $50,000, there may be options to transfer or amend. The right move depends on the specifics.

Where to confirm the current rules

• Ontario's official overview of the change is in the regulation itself:

O. Reg. 42/25 on e-Laws.

• The court's own guide to suing and defending is at the **Ontario Superior

Court of Justice — Small Claims Court**: ontariocourts.ca/scj/small-claims-court.

• Plain-language steps and forms are on Ontario.ca:

ontario.ca/page/suing-someone-small-claims-court.

Get in touch

Whether the simpler Small Claims route now fits your dispute — or whether it is worth giving up part of a larger claim to stay there — depends on the numbers, the deadlines, and how realistic it is to collect afterward. If you are weighing a claim or have been served with one, JSR Legals can help you understand your options and represent you. Reach us at info@jsrlegals.ca.

This article is general information about Ontario law, current as of June 2026, and is not legal advice for any specific situation. Rules, limits and deadlines can change — confirm the current requirements before you act.