VPN vs Proxy vs Tor: What's the Difference?
By Daniel Last updated July 4, 2026
A VPN encrypts all of your device's traffic and hides your IP system-wide, a proxy reroutes one app without encryption, and Tor bounces browser traffic through three volunteer relays for the strongest anonymity at the slowest speed. Which one fits depends on what you are protecting and from whom.
The 30-second answer
All three tools do the same basic trick: your traffic exits from another computer, so websites see that computer's IP instead of yours. The differences are scope, encryption, and trust. A VPN covers your whole device and encrypts everything, but you must trust the provider. A proxy covers a single app and usually encrypts nothing. Tor spreads trust across three random relays so that no single party knows both who you are and what you are doing, at a real cost in speed.
How each one works
How a VPN works
A VPN (virtual private network) creates an encrypted tunnel between your device and a server run by the VPN provider. Every app's traffic goes through the tunnel, so your ISP sees only that you are connected to the VPN, and websites see the server's IP address. The catch: the provider sits in your ISP's old position and could observe your traffic, which is why its logging policy and jurisdiction matter more than any speed benchmark.
How a proxy works
A proxy is a single relay server that forwards requests for one application, typically configured in your browser or a specific program (often as an HTTP or SOCKS proxy). The destination sees the proxy's IP instead of yours, but most proxies add no encryption of their own, so the operator, and anyone between you and the proxy, can read unencrypted traffic. The rest of your device keeps using your real IP.
How Tor works
Tor (The Onion Router) wraps your traffic in three layers of encryption and passes it through three volunteer-run relays. The entry relay knows your IP but not your destination; the exit relay knows the destination but not your IP; the middle relay knows neither. This layered design provides anonymity a single-company VPN cannot, but bouncing through three relays makes it noticeably slower, and it normally protects only what you do inside Tor Browser.
VPN vs proxy vs Tor at a glance
| VPN | Proxy | Tor | |
|---|---|---|---|
| Encryption | Yes, device to VPN server | Usually none | Yes, three layers |
| Who can see your traffic | The VPN provider | The proxy operator (often unencrypted) | Exit relay sees traffic, but not who sent it |
| Speed | Fast (small overhead) | Fast to variable | Slow by design |
| IP masking scope | Whole device or network | One app or browser | Tor Browser (or per-app SOCKS) |
| Cost | Usually paid | Free to paid | Free |
| Best for | Everyday privacy, public Wi-Fi, region switching | Quick single-app IP change | Anonymity, censorship circumvention |
What none of them hide
Changing your IP does not make you anonymous to services you use. None of these tools hide:
- Logged-in accounts: if you sign in to Google or Facebook through a VPN, they know exactly who you are; you told them.
- Cookies and trackers: identifiers stored in your browser follow you across IP changes unless you clear or block them.
- Browser fingerprinting: your screen size, fonts, time zone, and hardware quirks can identify your browser regardless of IP. Tor Browser is the only one of the three that actively normalizes its fingerprint; digital-rights groups like the EFF have documented how effective fingerprinting is on ordinary browsers.
- What you share: no network tool can unshare a name, email, or photo you post yourself.
Common myths
- "Incognito mode hides my IP." No. Private browsing only avoids saving history and cookies on your own machine; every site still sees your real IP. Actually masking it takes one of the tools on this page; see how to hide your IP address.
- "A VPN makes me anonymous." It shifts trust from your ISP to the VPN provider. That is privacy, not anonymity.
- "Tor is illegal or only for criminals." Tor is legal in most countries and is used daily by journalists, researchers, and ordinary people avoiding surveillance and censorship.
- "A free proxy is a free VPN." Without encryption, a free proxy operator can read and modify your unencrypted traffic. You are the product more often than the customer.
Leaks to test for
A privacy tool only counts if your real IP never slips out around it. The classic culprit is WebRTC, the real-time communication feature browsers use for video calls: it can reveal your underlying IP addresses even while a VPN or proxy is active. Run our WebRTC leak test with your tool connected to check. It is also worth confirming your DNS requests go through the tunnel (most good VPN apps handle this) and simply reloading a what is my IP check after connecting to verify the address actually changed.
When to use which
- Public Wi-Fi at a cafe or airport: VPN, for the encryption more than the IP change.
- Everyday privacy from your ISP or region switching: VPN; it is the best speed-to-privacy trade-off.
- Quick IP change for one browser or a single app: proxy; low friction, but assume the operator can see the traffic.
- Researching sensitive topics, whistleblowing, or evading censorship: Tor Browser; strongest anonymity, slowest experience.
- Hiding your city from a website you commented on: any of the three; each masks the IP address that sites use to estimate your location.