Long held to be a form of
Banksia integrifolia,
Banksia saxicola was formally described by
Alex George in his 1981 monograph of the genus
Banksia. The species name is derived from the
Latin words 'rock' and verb 'inhabit' or 'grow in'. The type specimen was collected from the summit of
Mount William in the Grampians on 17 February 1977. A 2013 molecular study by Marcel Cardillo and colleagues using chloroplast DNA and combining it with earlier results reaffirmed
B. saxicola and
B. marginata as each other's closest relatives, and that
B. integrifolia was the next closest relative. Early in 2007, Mast and Thiele rearranged the genus
Banksia by merging
Dryandra into it, and published
B. subg. Spathulatae for the taxa having spoon-shaped cotyledons; thus
B. subg.
Banksia was redefined as encompassing taxa lacking spoon-shaped cotyledons. They foreshadowed publishing a full arrangement once DNA sampling of
Dryandra was complete. In the meantime, if Mast and Thiele's nomenclatural changes are taken as an interim arrangement, then
B. saxicola is placed in
B. subg.
Spathulatae. ==Distribution and habitat==