Ontario's Small Claims Court and LTB Limit Raised to $50,000: What This Means for Ontarians

Effective October 1, 2025, Ontario has raised the monetary jurisdiction of both the Small Claims Court and the Landlord and Tenant Board (LTB) to $50,000 under Ontario Regulation 42/25. ^[1] This significant change expands access to justice by allowing more Ontarians to resolve disputes in simplified, lower-cost forums.

Previously capped at $35,000, these tribunals now cover a broader range of monetary disputes—reducing legal costs, speeding up resolution times, and decreasing the Superior Court's caseload. ^[2][3]

Whether you're a small business owner with an unpaid invoice, a landlord seeking rent arrears, or an individual with a contract dispute, this update may mean you can now pursue your claim through a more accessible process.

What Changed

• Small Claims Court jurisdiction increased to $50,000 (excluding interest and costs). ^[1]
• Landlord and Tenant Board (LTB) monetary limit automatically matches this new cap, allowing larger rental-related claims to be heard at the LTB. ^[2]
• Appeal threshold raised to $5,000—meaning Small Claims decisions under $5,000 are generally final. ^[4]
• Claims that previously required Superior Court filing can now proceed in Small Claims Court, saving time and legal fees. ^[3]

Why It Matters

This regulatory change addresses a longstanding barrier to justice: the cost and complexity of pursuing moderate-sized claims. By expanding the jurisdiction of Small Claims Court and the LTB, Ontario enables:

• More claims to qualify for simplified proceedings—streamlined processes with relaxed rules of evidence and procedure. ^[7]
• Reduced legal costs for individuals and small businesses—lawyer representation is optional, and filing fees remain significantly lower than Superior Court. ^[3]
• Faster resolution times—Small Claims hearings are typically scheduled sooner than Superior Court trials.
• Improved efficiency across Ontario's justice system—by diverting eligible cases away from the Superior Court, judicial resources can focus on more complex matters. ^[3]

Examples of Claims Now Covered

The expanded jurisdiction now covers a wider range of disputes that previously would have required Superior Court proceedings:

• Contract or invoice disputes—unpaid business invoices, service agreements, or purchase orders up to $50,000.
• Property damage claims—damage to vehicles, property, or goods within the new limit.
• Landlord or tenant monetary claims—rent arrears, repair costs, overpayments, or property damage under the Residential Tenancies Act (RTA). ^[2][6]
• Consumer disputes—defective products, service quality issues, or breach of warranty claims.
• Recovery of money owed—loans, personal debts, or other monetary obligations up to $50,000.

Key Takeaways for Ontarians

If you're considering legal action or currently involved in a dispute, here's what you need to know:

• Review your claim amount—if your total claim (excluding interest and costs) is $50,000 or less, you may now file in Small Claims Court instead of Superior Court. ^[4]
• Choose the correct forum—use the LTB for rental matters governed by the RTA; use Small Claims Court for other monetary disputes. ^[7]
• Check updated forms and fees—filing requirements and court fees may have changed with the new regulation. ^[1]
• Consider amending existing claims—if you filed a claim in Superior Court before October 1, 2025, you may be able to transfer or amend it to Small Claims Court. ^[4]
• Seek guidance if unsure—paralegal services can help you determine the right forum, prepare documents, and represent you at hearings.

What This Means for Different Groups

For Small Businesses

Small business owners can now pursue unpaid invoices and contract disputes up to $50,000 through Small Claims Court—a faster, less expensive option than Superior Court litigation. ^[3]

For Landlords and Tenants

Landlords can file LTB applications for larger amounts of rent arrears or property damage. Tenants can pursue claims against landlords for overpayments, illegal charges, or maintenance failures that exceed the previous $35,000 cap. ^[2][6]

For Individuals

Personal disputes—whether over loans, services, property damage, or contracts—can now be resolved in Small Claims Court if they fall within the $50,000 limit, making justice more accessible. ^[3]