A tool holder for a powered hammer includes a tool holder housing. An actuator is coupled to the tool holder housing and is moveable among a range of operating positions that include a first position where the actuator locks a tool within the tool holder by engaging a rib on the tool, a second position where the actuator locks a tool within the tool holder by engaging a recess in the tool, and a third position where the actuator allows a tool to be released from the tool holder. An actuator locking mechanism releasably locks the actuator in at least the third position.