The 1985–86 Toto Cup Artzit was the 2nd season of the second tier League Cup (as a separate competition) since its introduction.
It was held in two stages.
First, the 16 Liga Artzit teams were divided into four groups.
The group winners advanced to the semi-finals, which, as was the final, were held as one-legged matches.
The competition was won by Hapoel Hadera, who had beaten Hapoel Acre 3–2 in the final.