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 besting Hapoel Givat Haim 4–3, and with winning over with the same result.