Ontario Raises Small Claims Court Limit to $50,000 - What It Means for You

Sara Santos-Vigneault
Aug 12
5 min read

Written by: Sara Santos-Vigneault

Date: August 11, 2025

Large "OTTAWA" sign framed by historic buildings and trees with yellow leaves. Blue sky above, colorful chairs in the foreground. — Ottawa, Ottawa, Kanada. P hoto by Jacob Meissner on Unsplash

As of October 1, 2025, Ontario’s Small Claims Court monetary cap will rise from $35,000 to $50,000 per plaintiff.

The appeal threshold will also increase from $3,500 to $5,000. These changes are set out in Ontario Regulation 42/25, which amends O. Reg. 626/00 under the Courts of Justice Act.

The regulation was made April 24, 2025, filed May 1, 2025, and published in The Ontario Gazette on May 17, 2025. This is the first jurisdictional change since January 1, 2020, when the limit rose from $25,000 to $35,000.

Understanding Small Claims Court

Small Claims Court is a branch of Ontario’s Superior Court of Justice that deals with civil disputes falling within its monetary jurisdiction. As of now, that limit is $35,000 per plaintiff, but beginning October 1, 2025, it will increase to $50,000 under Ontario Regulation 42/25, which amends O. Reg. 626/00. The court operates under the Courts of Justice Act and follows its own procedural rules set out in O. Reg. 258/98 – Rules of the Small Claims Court.

Jurisdiction is the legal authority of a court to hear specific types of cases and determine remedies, including the maximum dollar value involved. In Small Claims Court, jurisdiction covers both the subject matter of the dispute and the claim’s value, which includes money owed and, in some cases, the assessed value of property sought.

Typical Cases Heard in Small Claims Court

Unpaid invoices or loans
Property damage claims
Breach of contract disputes
Return of personal property
Unpaid wages or services rendered

Purpose and Advantages

Small Claims Court is intended to be:

Simpler – Rules are streamlined compared to regular civil court, and plain-language guides are available for the public.
Faster – The process is designed to move cases through the system more quickly.
Less expensive – Filing fees are lower, and self-representation is common.

Although many litigants represent themselves, parties may also retain a lawyer or licensed paralegal for assistance with preparation, filing, and court appearances.

Governing Rules and Framework

Small Claims Court follows:

O. Reg. 258/98 – Rules of the Small Claims Court – Outlines all steps, from starting a claim to enforcing a judgment.
O. Reg. 626/00 – Small Claims Court Jurisdiction and Appeal Limit – Sets the monetary limit and appeal thresholds.

The Ontario Ministry of the Attorney General provides free, official guides explaining procedures, timelines, forms, and filing methods. These resources help self-represented litigants navigate the process while ensuring they meet court requirements.

Practical Considerations

While the court is more accessible than higher courts, certain challenges remain:

Strict timelines – Missing a filing or service deadline can delay or end a case.
Evidence requirements – Parties must still provide proper proof, including documents, witness statements, or expert evidence where applicable.
Enforcement – Winning a judgment does not guarantee payment. Further legal steps, such as wage garnishment or writs of seizure, may be necessary.

Official overview: https://www.ontariocourts.ca/scj/areas-of-law/small-claims-court/

Why This Change Matters

The new $50,000 limit means that more disputes can be resolved in Small Claims Court rather than in the higher-cost Superior Court of Justice.

A 2021 Statistics Canada report found that 18% of adults in the provinces experienced at least one serious legal problem over the preceding three years. However, only a small proportion used formal dispute resolution, and many abandoned their cases due to cost, delay, or complexity.

For disputes valued between $35,000 and $50,000, parties previously had to use regular civil court, which generally involves more formal procedures, higher filing fees, and potentially greater legal costs. The increase could help bridge that gap.

Statistics Canada study: https://www150.statcan.gc.ca/n1/pub/85-002-x/2022001/article/00001-eng.htm

The Legal Framework

Small Claims Court procedures are set by regulation under the Courts of Justice Act.

O. Reg. 258/98 – Rules of the Small Claims Court: https://www.ontario.ca/laws/regulation/980258

O. Reg. 626/00 – Small Claims Court Jurisdiction and Appeal Limit: https://www.ontario.ca/laws/regulation/000626

O. Reg. 42/25 – 2025 Amendment: https://www.ontario.ca/laws/regulation/r25042

Step-by-Step: How a Small Claims Case Works

Ontario’s Ministry of the Attorney General provides a Guide to Procedures in Small Claims Court, which breaks the process into six stages:

Claim – File your claim either online through the e-Filing Service: https://www.ontario.ca/page/file-small-claims-court-documents-online

Default Proceedings – If the defendant does not respond, you can request a default judgment.

Settlement Conference – An informal meeting with a judge to try to resolve the matter before trial.

Motions – Formal requests made to the court during the case (e.g., to extend a deadline or compel disclosure).

Trial and Judgment – The presentation of evidence and the judge’s decision.

Enforcement – If you win but are not paid, tools like garnishment of wages or writs of seizure and sale can be used to collect.

Full guide: https://www.ontario.ca/document/guide-procedures-small-claims-court

Enforcement: The Often-Overlooked Step

Winning a judgment doesn’t automatically mean you’ll get paid. Enforcement is the process of collecting what you’re owed.

This may involve:

Garnishment – Seizing part of the debtor’s wages or bank account funds.Writ of Seizure and Sale – Allowing the sheriff to seize and sell a debtor’s personal property or land.

Examination Hearing – Requiring the debtor to appear in court and answer questions about assets and income.

A Global News investigation told the story of a Durham Region couple who obtained a default judgment against a contractor, only to face significant challenges in collecting.

Article: https://globalnews.ca/news/6126869/ronald-gaul-contractor-consumer-sos/

Glass skyscraper reflects buildings and a Canadian flag in a grid pattern. Clear blue sky creates a calm mood. — Mississauga, Canada. Photo by SGC on Unsplash

Barriers Beyond the Monetary Limit

While raising the jurisdictional limit is a positive step for access to justice, it does not resolve all obstacles:

Delays – The Local reported in 2022 that Toronto Small Claims Court was processing files at only 67% of its pre-pandemic rate, compared to 144% for higher civil courts. https://thelocal.to/small-claims-court-delays/

Procedural complexity – Even with plain-language resources, self-represented litigants must navigate rules, deadlines, and court etiquette.

Collection challenges – As seen in multiple news stories, the enforcement stage can be just as difficult as winning the case itself.

One positive example appeared in a CityNews feature, where a Toronto resident used government guides to successfully file and win $2,500 against a contractor who failed to appear in court. Even then, enforcement steps were necessary to recover the money.

Article: https://toronto.citynews.ca/2024/02/02/speakers-corner-small-claims-court-contractor/

Filing Options and Deadlines

You can file a claim:

In person – At the Small Claims Court office serving the area where the dispute occurred or where the defendant lives.

Online – Through the Small Claims Court e-Filing Service Portal:

https://www.ontario.ca/page/file-small-claims-court-documents-online

E-filing User Guide PDF:

https://files.ontario.ca/mag-scc-e-filing-guide-en-utf8-2022-09-23.pdf

The limitation period (the legal time limit to start a claim) is generally two years from the date the cause of action arose, under Ontario’s Limitations Act, 2002: https://www.ontario.ca/laws/statute/02l24

Key Dates

Until September 30, 2025 – $35,000 monetary cap applies.October 1, 2025 onward – $50,000 cap and $5,000 appeal threshold take effect.

Appeals from Small Claims Court decisions (where allowed) go to the Divisional Court.

Summary: Practical Impact of the 2025 Changes

Wider access – Claims up to $50,000 can now be resolved in Small Claims Court. Lower cost pathway – Potentially reduces legal fees compared to higher court.
Still challenging – Delays and enforcement remain barriers.
Use official guides – Self-represented litigants should rely on Ontario government materials for accurate forms and deadlines.