Yes. The software is built-in to OS-X. However, you will need an external modem. I would suggest the Apple USB Modem.
With the modem installed, you can FAX through the Print dialog. Click on "PDF", then "FAX PDF". When you type in the contact, it will automatically put the FAX number entered in Address Book.
To receive a fax, go to System Preferences -> Print & Fax -> Faxing. Check "Receive faxes on this computer". Enter your phone number (it's what will show up in the FAX header, and select how you want the incoming FAX handled. Make sure your computer is not sleeping when you are expecting the FAX.
edit: you can use your home phone line, or, if you want to keep the machine enabled for receiving FAXs, you might want a 2nd line.