Tor is a toolset for a wide range of organizations and people that want to improve their safety and security on the Internet. Using Tor can help you anonymize web browsing and publishing, instant messaging, IRC, SSH, and other applications that use the TCP protocol. Tor also provides a platform on which software developers can build new applications with built-in anonymity, safety, and privacy features. The Tor Browser Bundle lets you use Tor on Windows, Mac OS X, or Linux without needing to install any software. It can run off a USB flash drive, comes with a pre-configured web browser to protect your anonymity, and is self-contained.
Thanks to Karamjit Lal for the update.