A rotary hammer includes a housing, a motor disposed within the housing, and a motor shaft defining a motor shaft axis. The rotary hammer further includes a spindle disposed within the housing and rotatable about a spindle axis that is transverse to the motor shaft axis, a sleeve positioned within the housing and rotationally fixed relative to the housing, and a piston received in the spindle and in the sleeve. The piston is configured to reciprocate within the spindle along the spindle axis. The rotary hammer further includes a striker is movably received within the piston and is configured to deliver axial impacts to a tool bit.