Soil permeability is one of key factors in the prediction of the wave-induced seabed response, which needs to be considered in the design of foundation around marine installations. Most previous studies in the field treated the soil permeability as a constant or varying in spacial domain, although it depends on numerous soil parameters. In this study, the soil permeability is considered as a function of pore-water pressures as reported in the literature. With this new feature, the governing equations will become non-linear differential equations. Numerical examples demonstrate the considerable influence of dynamic soil permeability on the wave-induced pore pressure and effective stresses. It is concluded that the conventional model with constant soil permeability under-estimates the liquefaction potential.