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My favorite free inbound fax service is Faxaway. This company has been in business since 1995 and despite their "Web 0.9" website, the service is rock solid. Sign up for a free Faxaway account and it will allow you to receive faxes and voicemails for free via your email account.
NEWS FLASH: Faxaway has begun to charge a $1/month fee for the inbound fax service. Not quite free, but still pretty darn cheap.
eFax is another well known free fax service online. They offer three different account types. The eFax FREE account, also referred to as their Limited Account, will provide you with a non-local fax line and up to 20 incoming faxes. But be aware that they call it "Limited" for a good reason. If you receive more than 20 fax pages in any thirty day period, eFax may terminate or suspend your account if you do not upgrade to a paid subscription service.
FaxBetter offers a free toll free fax number to anyone. Faxes are received in your email inbox as a PDF attachment. That's pretty standard, but what separates FaxBetter is that all faxes received are OCRed. This means the actual text from the fax is extracted by Optical Character Recognition and is then embedded into the body of the email, thus making the email searchable in your email program (Gmail, Outlook, Yahoo, etc.). The free service is limited to 50 incoming pages per month, and you have to receive a fax every 7 days to keep your free toll free fax number.