A hand tool with bit release device includes a connecting shaft, a block, a positioning bead and a cover. When the user wants to insert a tool bit into the connecting shaft, the user pushes the tool bit into the connecting shaft directly and the positioning bead engages with the tool bit firmly. When the user wants to release the tool bit from the connecting shaft, the user moves the cover axially relative to the connecting shaft and the positioning bead disengages with the tool bit so that the tool bit is released from the connecting shaft.