If you are hurt in an Ontario car accident and win compensation for pain and suffering, you may be surprised to learn that a chunk of that award can be taken off the top before you see it. This is the statutory deductible, and most people never hear about it until it affects their own case.

This guide explains what the deductible is, the 2026 figures, how a monetary threshold can make the deductible disappear on larger awards, and why juries are kept in the dark about it. It is general information to help you understand how these numbers work.

Key takeaways

  • Ontario applies a statutory deductible to pain-and-suffering (general damages) awards in many auto injury cases.
  • For 2026, the general-damages deductible is $47,913.01 and the threshold is $159,708.71.
  • If your general-damages award is at or below the threshold, the deductible is subtracted; above it, the award is paid in full.
  • The Family Law Act deductible for 2026 is $23,956.52.
  • These figures are indexed each year — the 2026 indexation rate was 2.4%, effective January 1, 2026 — so confirm current amounts with FSRA.

What the statutory deductible is

In Ontario auto injury cases, “general damages” is the legal term for compensation for pain and suffering — the non-financial harm of being injured. The law reduces many of these awards by a fixed dollar amount known as the statutory deductible. In effect, the deductible is a threshold of harm the system does not compensate: it is subtracted from what you would otherwise receive for pain and suffering.

The deductible applies to the general-damages portion of a claim. It does not work like a discount you can negotiate away; it is set by regulation and applied by the court.

The 2026 figures

The amounts are updated every year through indexation. For 2026, the indexation rate was 2.4%, effective January 1, 2026. As of 2026, the key figures are:

Item 2026 amount 2025 amount
Pain-and-suffering (general damages) deductible $47,913.01 $46,790.05
Monetary threshold (deductible disappears above this) $159,708.71 —
Family Law Act claims deductible $23,956.52 $23,395.04

The Family Law Act deductible applies to claims brought by certain family members of an injured person — for example, a spouse or child claiming for the loss of the injured person’s care, guidance, and companionship. It is a separate, smaller deductible from the one applied to the injured person’s own general damages.

How the threshold works

The monetary threshold is what makes the deductible so important to understand. As of 2026, the threshold is $159,708.71. The rule is straightforward:

  • If the general-damages award is at or below $159,708.71, the deductible of $47,913.01 is subtracted from it.
  • If the general-damages award is above $159,708.71, the award is paid in full and no deductible is subtracted.

In other words, the deductible bites hardest on small and moderate awards, and disappears entirely once an award clears the threshold.

The deductible bites hardest on small and moderate awards, and disappears entirely once an award clears the threshold. That is why the exact size of a general-damages award can matter far more than it first appears.

A worked example

Consider two injured people, using the 2026 figures.

Person A is awarded $100,000 for pain and suffering. Because that award is at or below the $159,708.71 threshold, the $47,913.01 deductible applies. After the deductible, Person A receives $52,086.99 for pain and suffering.

Person B is awarded $170,000 for pain and suffering. Because that award is above the $159,708.71 threshold, no deductible is subtracted. Person B receives the full $170,000.

Notice how a difference in the award crosses the threshold and changes the outcome dramatically. This is why the exact size of a general-damages award can matter far more than it first appears — a modest change can be the difference between losing nearly $48,000 to the deductible and losing nothing to it.

Juries are not told about the deductible

Here is a feature that catches many people off guard: in a jury trial, the jury is generally not told that a deductible will be applied. The jury decides the amount of general damages, and the deductible is then applied by the court afterward. That means a jury might award what sounds like a fair number without knowing that a large fixed amount will be removed from it. It is one more reason to understand how these figures interact before your case reaches that stage.

Family Law Act claims and the separate deductible

The deductible does not only affect the injured person. When certain family members bring a claim under the Family Law Act — for the loss of an injured relative’s care, guidance, and companionship — those awards are reduced by their own deductible. As of 2026, the Family Law Act deductible is $23,956.52, up from $23,395.04 in 2025. It is smaller than the general-damages deductible, but it can still take a meaningful bite out of a family member’s award, and it moves each year with the same indexation.

Families are sometimes surprised that their claims are treated separately and reduced separately. If more than one person in a household is claiming, it is worth understanding how each deductible applies to each claim.

How indexation moves the figures

The deductible and threshold are indexed every year, which is why they rise over time. The 2026 amounts reflect a 2.4% indexation rate that took effect January 1, 2026. You can see the effect by comparing years: the general-damages deductible rose from $46,790.05 in 2025 to $47,913.01 in 2026, and the Family Law Act deductible rose from $23,395.04 to $23,956.52 over the same period. Small yearly increases add up, and they shift where the threshold sits as well.

Because these numbers change annually, any figure you read — including the ones in this article — can be out of date by the following year. Before relying on a specific amount, confirm the current figure with FSRA, which publishes the indexation amounts each year in its guidance.

What this means for a potential claim

The deductible is one of several reasons the value of an auto injury claim is not simply the number a jury or judge names. Between the deductible, the threshold, and the yearly indexation, the amount you actually receive for pain and suffering can differ from the headline figure. Understanding these mechanics early — rather than after a verdict — helps set realistic expectations and informs decisions along the way. Because the rules are technical and depend on the facts of each case, general information like this is a starting point, not a substitute for advice about your own situation.

Frequently asked questions

Does the deductible apply to all of my compensation?

No. The statutory deductible applies to the general-damages (pain-and-suffering) portion of an auto injury claim. Other types of losses are handled under their own rules. This is a general explanation, and how it applies depends on your specific case.

What is the 2026 deductible amount?

As of 2026, the general-damages deductible is $47,913.01, and the separate Family Law Act deductible is $23,956.52. These figures are indexed annually, so confirm the current amount with FSRA.

What happens if my award is very large?

If your general-damages award is above the 2026 threshold of $159,708.71, the deductible is not subtracted and the award is paid in full. At or below that threshold, the deductible applies.

Will the jury know about the deductible?

Generally not. The jury sets the general-damages figure, and the court applies the deductible afterward. The jury is typically not told that a deductible will reduce the amount.

Why do these numbers change every year?

They are indexed annually. The 2026 figures reflect a 2.4% indexation rate effective January 1, 2026. Because they change, always confirm the current amounts with the official source.

If you have been injured in an Ontario car accident and want to understand how the deductible and threshold might affect a potential claim, Azimi Law would be glad to walk you through the general picture. Reach out for information about your situation — no pressure and no promises, just a clear conversation about how these rules work.