The Rufous-headed Tanager is a Brazilian endemic and is restricted to south-east Brazil from southern Bahia to the east of Santa Catarina. It is found in forest borders and light woodland where it tends to forage on the upper canopy (which may explain why there seem to be few photos of this species.)

The male has olive-green upperparts and a yellow rump. The head is mostly rufous with yellow behind the ear-coverts. Underparts are grey with a rufous breast and yellow in the centre of the belly. The bill is yellow with a darker maxilla.

The female is very similar to the female Guira Tanager and may not be distinguishable in the field.