Touch panels with dynamic zooming and low profile bezels

An electronic device may have a touch panel. The touch panel may detect touch events using one or more cameras. The touch panel may include a planar exterior surface, such as a cover glass, that extends over an active region of a display and an inactive peripheral region. The cameras may be located underneath the inactive peripheral region. The cameras may include a light turning element to allow the cameras to detect touch events, without being raised above the exterior surface of the active region of the display (e.g., without having a raised profile). The touch panel may detect touch events using dynamic zooming techniques. As an example, the touch panel may divide the active region into sections, search for touch events in each section, zoom into sections in which touch events are found, and further search the sections in which touch events were found.