diff --git a/.changelog/6763.txt b/.changelog/6763.txt
new file mode 100644
index 0000000000..7305e86b62
--- /dev/null
+++ b/.changelog/6763.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+billingbudget: fixed a bug where `budget_filter.credit_types_treatment` in `google_billing_budget` resource was not updating.
+```
diff --git a/google/resource_billing_budget.go b/google/resource_billing_budget.go
index 612a4c4aad..f7c259a4cc 100644
--- a/google/resource_billing_budget.go
+++ b/google/resource_billing_budget.go
@@ -563,7 +563,8 @@ func resourceBillingBudgetUpdate(d *schema.ResourceData, meta interface{}) error
 			"budgetFilter.labels",
 			"budgetFilter.calendarPeriod",
 			"budgetFilter.customPeriod",
-			"budgetFilter.services")
+			"budgetFilter.services",
+			"budgetFilter.creditTypesTreatment")
 	}
 
 	if d.HasChange("amount") {
diff --git a/google/resource_billing_budget_test.go b/google/resource_billing_budget_test.go
index 0f60bc7b34..e1255188fb 100644
--- a/google/resource_billing_budget_test.go
+++ b/google/resource_billing_budget_test.go
@@ -147,6 +147,7 @@ resource "google_billing_budget" "budget" {
     labels  = {
       label = "bar"
     }
+    credit_types_treatment = "EXCLUDE_ALL_CREDITS"
   }
 
   amount {
@@ -241,6 +242,7 @@ resource "google_billing_budget" "budget" {
     labels  = {
       label1 = "bar2"
     }
+    credit_types_treatment = "INCLUDE_ALL_CREDITS"
     services = ["services/24E6-581D-38E5"] # Bigquery
   }