Tar is just bundling into a single file AFAIK. There is a slight benefit depending on your compression tool to tar and then compress, because (AFAIK again)some tools compress files individually and then write them into a hierarchical file(I guess this is what xz does as well, since it's searchable?). If you tar first, these tools will work better, since they encode patterns found in all files instead if doing it per file(which means e.g. if there is a header once per file, that will get compressed in the tar.comorpress, not in the . compress)