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If you have Tiger OS or better in your Mac and you can plug your Mac into a phone line, you can send and receive faxes. You'll pay only for for the phone call. Here's how:

Sending a Fax with your Mac

When you choose to print from an application, the Print Panel allows you to select Fax PDF to send a fax. Choose fax cover page options from this same menu. Addresses show entries from your Address Book with a fax number or you can you can enter a fax number manually.

Mac Print From Document

Mac Print Panel

Receiving a Fax with your Mac

Use the Mail application to organize and view received faxes. You can choose to save incoming faxes in a folder you select from the Printing & Faxing preference panel. You can also choose to forward incoming faxes to an email address and/or print them.

If you need to upgrade to Tiger, MacMall usually has the best price for Mac OS X v10.4.6 Tiger - Single User

This solution requires you to tie up your phone line to send or receive faxes. Take a look at our reviews of Fax Services if you want the convenience of a dedicated fax line without the need to add a second phone line.