An impact tool includes a housing, a motor having an output shaft defining a first axis, a drive shaft rotatably supported by the housing about a second axis oriented substantially normal to the first axis, and an impact mechanism coupled between the motor and the drive shaft and operable to impart a striking rotational force to the drive shaft. The impact mechanism includes an anvil rotatably supported by the housing and coupled to the drive shaft, and a hammer coupled to the motor to receive torque from the motor and impart the striking rotational force to the anvil. The impact tool also includes a ratcheting mechanism operable to prevent rotation of the anvil and the drive shaft in a selected direction relative to the housing.