A vehicle proximity switch and method are provided having sensitivity control. The switch includes a proximity sensor, such as a capacitive sensor, installed in a vehicle and providing a sense activation field. Control circuitry processes the activation field to sense user activation of the switch by comparing the activation field to a threshold. The threshold is adjusted down when a substantially stable sensor signal is detected below the threshold for a minimum time period, and the threshold is adjusted up when a sensor signal greater than the threshold by a predetermined value is detected.