A rotary hammer is adapted to impart axial impacts to a tool bit. The rotary hammer comprises a housing, a motor supported by the housing, a gearcase, and a spindle housed in the gearcase and coupled to the motor for receiving torque from the motor, causing the spindle to rotate. The rotary hammer also comprises a reciprocating impact mechanism operable to create a variable pressure air spring within the spindle. The rotary hammer also comprises a vibration damping mechanism including a base on the gearcase, a counterweight circumscribing the base, and a first spring arranged between the base and the counterweight and defining a first biasing axis that is parallel to the reciprocation axis. The vibration damping mechanism also includes a second spring arranged between the base and the counterweight and arranged along the first biasing axis.