 Banksia paludosa was first described by Robert Brown in his 1810 On the Proteaceae of Jussieu, and named Banksia paludosa. In 1870, George Bentham demoted it to a variety of B. integrifolia (Coast Banksia), but in 1981 Alex George restored it to species rank. Its specific epithet is derived from the Latin noun palus "marsh", but is somewhat misleading, as it more often grows on sandstone ridges and heathland. Its common names, marsh banksia and swamp banksia, echo its scientific name.
