I recently added the following to my list of online literary magazines:
21 Stars Review
This in addition to several other worthwhile literary sites, such as Dark Sky, failbetter, Identity Theory, Juked, Storyglossia, The Danforth Review, The Kenyon Review, LWOT, and others.
Reading fiction online may not be what the Internet is best-known for. But it's something that makes the Net worth knowing.