The 1965–66 Israel State Cup (Hebrew: גביע המדינה, Gvia HaMedina) was the 27th season of Israel's nationwide football cup competition and the 12th after the Israeli Declaration of Independence.
A rule change was instituted this season, so that in the event of a tie at the end of 90 minutes and extra time, there will be a penalty shoot-out, instead of a replay.
The first two penalty shoot-outs of the competition occurred on the first round, played on 18 September 1965, with Hapoel Shefayim besting Hapoel Givat Haim 4–3, and with Hapoel Sha'ar HaNegev winning over Hapoel Ramat David with the same result.
Hapoel Haifa and Shimshon Tel Aviv met at the final, the former winning 2–1 to claim its second cup.
Matches were played on 29 January 1966