Kentucky Small Claims Court Limit: $2,500 Cap, Costs, and Jurisdiction Rules

The $2,500 Cap

Under KRS 24A.230, the Small Claims Division of the District Court can hear civil cases where the disputed amount is $2,500 or less, exclusive of interest and court costs. That means a plaintiff can claim up to $2,500 in actual damages and separately request interest and costs on top of that figure.

This cap has not been adjusted since the small claims division was created in 1976. Kentucky and Rhode Island share the distinction of having the lowest small claims ceiling in the country. By comparison, Tennessee allows claims up to $25,000 and Ohio allows $6,000.

The $2,500 limit is set by statute, not by court rule. Only the Kentucky General Assembly can raise it through legislation. Administrative court orders — even from the Supreme Court of Kentucky — cannot change the statutory cap.

What Counts Toward the Limit

The limit applies to the principal amount in dispute: the unpaid invoice, the property damage, the unreturned deposit, the cost of incomplete work. Interest and court costs are calculated separately and do not count against the $2,500 ceiling.

If a plaintiff's actual damages exceed $2,500, the case does not belong in small claims. The plaintiff would need to file in the regular civil docket of the District Court (claims up to $5,000) or Circuit Court (claims over $5,000).

A plaintiff who has $4,000 in damages cannot voluntarily reduce the claim to $2,500 to stay in small claims and then pursue the remaining $1,500 in a separate suit. Courts treat that as claim-splitting.

When a Counterclaim Pushes Past the Limit

The same $2,500 cap applies to counterclaims. Under KRS 24A.290, a defendant who files a counterclaim (Form AOC-185) can claim up to $2,500 for damages arising from the same transaction.

If a compulsory counterclaim exceeds $2,500, KRS 24A.310(1) requires the entire case — the original claim and the counterclaim — to be transferred out of the small claims division. Cases up to $5,000 go to the regular District Court docket. Cases over $5,000 go to Circuit Court. Transfer brings formal civil rules, different fee schedules, and potentially longer timelines.

Filing Fees and Court Costs

Small claims filing fees in Kentucky range from roughly $25 to $30, depending on the county. The plaintiff also pays for service of process — certified mail is the cheapest option, sheriff service costs more.

If a case is transferred to regular District Court (because of a compulsory counterclaim over the limit or a jury trial demand), the standard District Court filing fee applies. Under Supreme Court Order 2026-15, opening a standard District Court civil action costs about $80 ($50 base filing fee, $10 Access to Justice fee, $20 court technology fee).

Appeals cost $60, paid when filing the Notice of Appeal to Circuit Court.

Defendants who cannot afford court fees can request a waiver by filing Form AOC-026 (Motion for Waiver of Costs and Fees). The form requires a detailed financial affidavit. If the judge approves it, filing fees and court costs are waived.

What the Small Claims Division Cannot Hear

Even when the amount falls under $2,500, certain case types are excluded. The small claims division has no jurisdiction over defamation (libel or slander), alienation of affections, malicious prosecution, or abuse of process claims. It also cannot grant pre-judgment remedies — no pre-judgment attachment, garnishment, or property seizure.

No individual or business can file more than 25 small claims in a single District Court per calendar year. Government entities are exempt from that cap.

Planning Your Response Around the Limit

If you have been sued in Kentucky small claims and the amount is close to $2,500, the limit affects your strategic options. A counterclaim that stays under the cap keeps the case in the simpler small claims process. A compulsory counterclaim that exceeds it triggers an automatic transfer to regular civil court with different procedures.

The Kentucky Small Claims Response Guide includes a counterclaim calculator worksheet that helps you figure out whether your potential counterclaim stays within the $2,500 limit or triggers a transfer.

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