October 1, 2025 – It’s Official: Small Claims and LTB Limit Now $50k

By: Megan Alexander

Effective now, October 1, 2025, the Ontario Small Claims Court and the Landlord and Tenant Board (“LTB”) monetary limit increases from $35,000 to $50,000.

This highly-anticipated change under Ontario Regulation 42/25 expands access to this Court’s streamlined and cost-effective process, allowing more individuals and businesses to resolve disputes efficiently.

The Small Claims Court is designed to handle claims quickly and with fewer formalities than the higher Courts. It is commonly used for resolving disputes involving contracts, property damage, and unpaid bills.

In addition, the Small Claims Court can enforce orders issued by the LTB, including remedies such as seizure and sale of property or wage garnishment (see my enforcement overview article here).

Adapting to the Expanded Small Claims Jurisdiction for Ongoing Litigation

With the new monetary limit now in effect, parties involved in ongoing matters, whether already before the Small Claims Court or commenced in the Superior Court, should carefully consider how this change may impact their litigation strategy.

Depending on the circumstances, there may be opportunities to amend an existing claim or transfer an action to better align with the updated jurisdictional framework.

i)                  Amending Existing Claims

Plaintiffs may amend their claims up to thirty (30) days before the initial trial date without seeking Court approval or consent from other parties to their action, subject to some exemptions. With the increase of the Small Claims Court limit to $50,000, plaintiffs who previously limited their claims to $35,000 or less should consider amending their claim to seek compensation up to the new $50,000 limit. Amending promptly ensures the claim reflects the full amount of actual losses.

ii)                Transferring from Superior Court to Small Claims Court

Plaintiffs with existing Superior Court claims of $50,000 or less should evaluate transferring their case to the Small Claims Court. This type of transfer between the Courts require the consent of all parties and are limited to monetary claims (less than $50,000) or recovery of personal property, per the Small Claims Cour jurisdiction. Claims seeking non-monetary remedies such as injunctions would not be eligible for the transfer.

What does this mean for the LTB?

Pursuant to s. 207(1) of the Residential Tenancies Act, 2006 (the “RTA”) which states that the Small Claims Court and the LTB monetary limits are “tied”, this change increases the LTB’s monetary cap from $35,000 to $50,000, as well.

This is certainly a welcomed change for landlords pursuing rent arrears and other amounts before the LTB. Current monthly rental amounts and significant delays before the LTB have seen many landlords in recent months “bumping up against” the previous monetary jurisdiction of $35,000 and, worse, often waiving entitlement to amounts exceeding $35,000.00 in favour of having matters fully and finally concluded and/or to avoid what can be costly proceedings before the Superior Court.  Now, the LTB can hear applications up to $50,000, as of today’s date.

Legal Representation in the Small Claims Court and/or LTB

Parties to a Small Claims Court or LTB action may be represented by a lawyer, a licensed paralegal, or choose to represent themselves, offering flexibility depending on individual circumstances.

Conclusion

This is a significant shift for both the Small Claims Court and the LTB. With higher monetary limits and more streamlined procedures, individuals, landlords, tenants, and businesses can resolve larger disputes more efficiently and affordably. These changes enhance access to justice and make both forums more effective tools for everyday legal issues.

If you have questions about this monetary limit increase or how these changes may effect your current litigation strategy in either the Small Claims Court or the LTB, we encourage you to reach out to Megan Alexander or Kristin Ley.

Megan A. Alexander is a licensed paralegal who works within the Commercial Litigation and Multi-Residential Housing Groups at Cohen Highley LLP in London, Kitchener, Stratford, Strathroy and Windsor. Ms. Alexander’s main areas of practice is within the Ontario Small Claims Court (including enforcement) and the Condominium Authority Tribunal (“CAT”).