Microelectromechanical system (MEMS) inertial sensors exhibiting reduced parasitic capacitance are described. The reduction in the parasitic capacitance may be achieved by forming localized regions of thick dielectric material. These localized regions may be formed inside trenches. Formation of trenches enables an increase in the vertical separation between a sense capacitor and the substrate, thereby reducing the parasitic capacitance in this region. The stationary electrode of the sense capacitor may be placed between the proof mass and the trench. The trench may be filled with a dielectric material. Part of the trench may be filled with air, in some circumstances, thereby further reducing the parasitic capacitance. These MEMS inertial sensors may serve, among other types of inertial sensors, as accelerometers and/or gyroscopes. Fabrication of these trenches may involve lateral oxidation, whereby columns of semiconductor material are oxidized.