Tort Costs in America - Fourth Edition

The fourth edition of Tort Costs in America, composed by The Brattle Group and published by ILR, found that the costs and compensation paid into the U.S. tort system reached over $655.6 billion in 2025 - equating to 2.12 percent of U.S. GDP and over $4,900 per U.S. household. The study also found that tort costs continue to grow faster than inflation, at an average annual rate of 7.8 percent between 2019 and 2025. 

Tort Costs in America: An Empirical Analysis of Costs and Compensation of the U.S. Tort Systemalso estimates every state’s per-household tort costs. 

Some of the states with the highest per-household tort costs include: 

• Delaware ($7,814) 
• New York ($7,650) 
• New Jersey ($6,709) 
• Nevada ($6,448) 
• Georgia ($6,247) 

The study underscores not only the challenge of rising tort costs, but the role individual state laws and policies have on those same costs. Meaningful reforms that strengthen state legal climates and bring balance to the civil justice system can help reduce those costs. Indeed, Florida offers a clear example. Following the state’s landmark 2023 civil justice reforms—the effects of which are only beginning to take hold—tort costs declined as a share of the state’s economy from 3.35% to 3.11%, and Florida improved by moving down four spots in the ranking of state tort costs per household. Even as total dollar costs continued to rise nationally, Florida’s relative progress shows that policy choices matter. These early results offer an encouraging indication that state policy choices can ease the burden of tort costs on businesses, consumers, and residents alike.