Abstract: A tap holder which is particularly adapted for use on a numerical-controlled machine is the subject matter herein. The tap holder includes an elongated shaft, which has a conventional tap collet on one end thereof. A tap holder body is rotatably and axially movably mounted on the shaft. The body is particularly adapted for connection to a tool holder of a numerically-controlled machine. A collar is mounted on the shaft. A pair of balanced springs is mounted on the shaft on opposed sides of the collar. Both springs are connected to the body to allow relative axial movement between the shaft and the body. A limited drive torque assembly drivingly connects the shaft to the body to drive the shaft at a torque which does not exceed a predetermined maximum amount.