diff --git a/.circleci/config.yml b/.circleci/config.yml
index df58307454..c091b5074b 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -16,7 +16,7 @@ jobs:
         # We do this instead of setting --default-tf-version because setting
         # that flag starts the download asynchronously so we'd have a race
         # condition.
-        TERRAFORM_VERSION: 1.2.9
+        TERRAFORM_VERSION: 1.3.0
     steps:
     - checkout
     - run: make build-service
diff --git a/Dockerfile b/Dockerfile
index e1dd732668..7925c9ebb5 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -13,11 +13,11 @@ FROM ghcr.io/runatlantis/atlantis-base:2022.09.08 AS base
 ARG TARGETPLATFORM
 
 # install terraform binaries
-ENV DEFAULT_TERRAFORM_VERSION=1.2.9
+ENV DEFAULT_TERRAFORM_VERSION=1.3.0
 
 # In the official Atlantis image we only have the latest of each Terraform version.
 SHELL ["/bin/bash", "-o", "pipefail", "-c"]
-RUN AVAILABLE_TERRAFORM_VERSIONS="0.11.15 0.12.31 0.13.7 0.14.11 0.15.5 1.0.11 1.1.9 ${DEFAULT_TERRAFORM_VERSION}" && \
+RUN AVAILABLE_TERRAFORM_VERSIONS="0.11.15 0.12.31 0.13.7 0.14.11 0.15.5 1.0.11 1.1.9 1.2.9 ${DEFAULT_TERRAFORM_VERSION}" && \
     case "${TARGETPLATFORM}" in \
         "linux/amd64") TERRAFORM_ARCH=amd64 ;; \
         "linux/arm64") TERRAFORM_ARCH=arm64 ;; \
diff --git a/testdrive/utils.go b/testdrive/utils.go
index 0cb3d3653a..fcc14a4fad 100644
--- a/testdrive/utils.go
+++ b/testdrive/utils.go
@@ -34,7 +34,7 @@ import (
 )
 
 const hashicorpReleasesURL = "https://releases.hashicorp.com"
-const terraformVersion = "1.2.9"
+const terraformVersion = "1.3.0"
 const ngrokDownloadURL = "https://bin.equinox.io/c/4VmDzA7iaHb"
 const ngrokAPIURL = "localhost:41414" // We hope this isn't used.
 const atlantisPort = 4141
diff --git a/testing/Dockerfile b/testing/Dockerfile
index 3007958b4d..66efcd9400 100644
--- a/testing/Dockerfile
+++ b/testing/Dockerfile
@@ -3,7 +3,7 @@ FROM golang:1.17
 RUN apt-get update && apt-get install unzip
 
 # Install Terraform
-ENV TERRAFORM_VERSION=1.2.9
+ENV TERRAFORM_VERSION=1.3.0
 RUN case $(uname -m) in x86_64|amd64) ARCH="amd64" ;; aarch64|arm64|armv7l) ARCH="arm64" ;; esac && \
     wget -nv -O terraform.zip https://releases.hashicorp.com/terraform/${TERRAFORM_VERSION}/terraform_${TERRAFORM_VERSION}_linux_${ARCH}.zip && \
     mkdir -p /usr/local/bin/tf/versions/${TERRAFORM_VERSION} && \