A battery charge state indicator presents an information handling system battery charge state with an illumination element at a housing side surface in response to end user proximity detected at both first and second capacitive sensor electrodes disposed at the side surface. The capacitive sensor electrodes are supported at a nonconductive material, such as a plastic palm rest covered by carbon fiber material, to provide a proximity detection path, and are grounded to an outer surface of the information handling system housing to reduce false detection induced by end user grasp of the information handling system housing.