Individuals use Tor to keep websites from tracking them and their family members, or to connect to news sites, instant messaging services, or the like when these are blocked by their local Internet providers. Tor's hidden services let users publish web sites and other services without needing to reveal the location of the site. Individuals also use Tor for socially sensitive communication: chat rooms and web forums for rape and abuse survivors, or people with illnesses.
Tor can't solve all anonymity problems. It focuses only on protecting the transport of data. You need to use protocol-specific support software if you don't want the sites you visit to see your identifying information. For example, you can use web proxies such as Privoxy while web browsing to block cookies and withhold information about your browser type.
Also, to protect your anonymity, be smart. Don't provide your name or other revealing information in web forms. Be aware that, like all anonymizing networks that are fast enough for web browsing, Tor does not provide protection against end-to-end timing attacks: If your attacker can watch the traffic coming out of your computer, and also the traffic arriving at your chosen destination, he can use statistical analysis to discover that they are part of the same circuit.