South-eastern Brazil (southern Bahia and Goiás south to Santa Catarina), south-eastern Paraguay and extreme north-eastern Argentina (northern Misiones).
 
Population
Estimated population is unknown (2010).
Black-capped Screech Owl (Megascops atricapilla) [XC227049]
by Rodrigo Dela Rosa from Ubatuba - Folha Seca road, Sao Paulo, Brazil (song)
Black-capped Screech Owl (Megascops atricapilla) [XC425947]
by Rafael Lima from Paranapiacaba,Santo Andr\u00e9, S\u00e3o Paulo State, Brazil (song)
Subspecies
Otus atricapillus (Sibley and Monroe 1990, 1993) has been split into Otus atricapilla and Otus guatemalae following AOU (1998) and SACC (2005) and Otus hoyi following SACC (2005). These species have subsequently been moved to the genus Megascops following AOU (2003). Otus guatemalae (AOU 1998) includes Otus vermiculatus (Sibley and Monroe 1990, 1993). Gender agreement of Megascops atricapilla follows David and Gosselin (2002a).
Perhaps a member of a superspecies, along with Guatemalan Screech-Owl (Megascops guatemalae), Vermiculated Screech-Owl (Megascops vermiculatus), Yungas Screech-Owl (Megascops hoyi) and Long-tufted Screech-Owl (Megascops sanctaecatarinae). Sometimes considered to include some or most of those as subspecies. Southern populations have been sometimes separated as argentinus.