An inductive proximity sensor includes a sensor housing, a sensing coil and an evaluation circuit. The sensor housing may generally include a sensing portion and a body portion. The evaluation circuit may be electrically coupled to the sensing coil and disposed in the body portion. The sensing coil may be positioned in the sensing portion such that the sensing coil is recessed from an outer edge of the sensor housing by a protective annulus disposed between the sensing coil and the outer edge. The sensing coil may be spaced from the sensor housing by a zone having low magnetic permeability relative to the sensor housing disposed between the sensing coil and the sensor housing. The zone may extend circumferentially around the sensing coil. A protective plate may be disposed between the outer edge of the sensor housing and the sensing coil and recessed from the outer edge of the housing.