There is no difference. "tranny" is short for transsexual and "shemale" is a slang term for a transsexual
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Originally Posted by reference.com
Shmale:
In current usage, shemale (sometimes she-male) is a usually derogatory term for a person who appears to be female, possessing both breasts and male genitalia.
This term, along with tranny, ladyboy and others, is used mainly in the American sex industry to refer to pre-operative transsexuals who have not undergone gender reassignment surgery. Less frequently, it is used to describe persons with an intersex condition. Many people, particularly transgendered individuals themselves, consider the term highly offensive.
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Quote:
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Originally Posted by dictionary.com
Transsexual:
1. a person having a strong desire to assume the physical characteristics and gender role of the opposite sex.
2. a person who has undergone hormone treatment and surgery to attain the physical characteristics of the opposite sex.
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So, a shemale is to tranny as a fag is to homosexual.
(wow, i need a life)