TAR.XZ is a TAR achieve that is compressed with XZ compression technique. TAR.XZ is also known as TXZ files. TAR files contain uncompressed files. TAR.XZ files use LZMA2 compression algorithm to compress the TAR files. TAR.XZ files are used in UNIX Operating Systems.
7z is an archive format which was introduced 1999 with the 7-Zip open source file archiver. 7z is a container format which supports a variety of compression and encryption algorithms. Some examples are: bzip2, LZMA2 and LZMA.
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