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There are several potential reasons why your budget might not be working as expected with cost filters using specific tags, even after activating these tags in the Cost Allocation Tags section:
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Time delay: It can take up to 24 hours for newly activated cost allocation tags to appear in Cost Explorer and budgets. If you've just activated the tags, you may need to wait for a full day before they become effective.
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Resource charges: Your tagged resources must actually incur charges before Cost Explorer and budgets can show costs for the associated cost allocation tags. If the resources haven't generated any costs yet, they won't appear in your budget calculations.
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Tag application: Ensure that the tags are correctly applied to all relevant resources. If some resources are missing the tags, their costs won't be included in the budget calculations.
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AWS Organizations: If you're using AWS Organizations, note that Cost Explorer doesn't support AWS Organizations resources tags. This could affect your budget if it's relying on such tags.
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Account changes: If your account has recently moved between different AWS Organizations, your active tags may have been deactivated. In this case, they would need to be reactivated by the new management account.
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Management account access: If you're a member account in an AWS Organizations setup, make sure you have the necessary permissions to access Cost Explorer and create budgets. You may need to contact your management account to grant the required access.
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Tag key case sensitivity: AWS treats tag keys as case-sensitive. Ensure that the tag keys in your budget filter exactly match the activated tag keys, including the correct capitalization.
To troubleshoot, double-check that your tags are correctly applied to the resources, verify that the resources are incurring charges, and ensure that sufficient time has passed for the tag activation to take effect. If the issue persists, you may want to contact AWS support for further assistance.
Sources
No cost allocation tags in Cost Explorer | AWS re:Post
Activate cost allocation tags associated with the solution - Edit in the Cloud on AWS
Activate cost allocation tags associated with the solution - Enhanced Document Understanding on AWS
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I checked all these things and everything seems to be fine.