let's say you have the tar file
and you want to extract it to
You can use this command to extract the contents of the tar file to /tmp/source:
tar -C /tmp/source -xzvf /home/redhat123/package.tar.gz
watch out for the spaces and syntax. If you want a GUI, you can ark (in RHL it is present, i dunno about other distros):
And you can just drag and drop to a directory.