Online evaluation of the accuracy level of the phasor measurement unit (PMU) is very useful in assessing the accuracy ranges of PMU measurements. Such results can be applied to avoid the misoperation of power system protection and control and enhance the accuracy of power system state estimation. Because the theoretical values are unknown, the evaluation indices defined in the IEEE/IEC standard 60255-118-1, such as the total vector error, frequency error, and rate of change of frequency error, cannot be calculated online. To address this concern, a new index named the total waveform error (TWE) is proposed in this paper. It is defined as a ratio of fundamental root-mean-square (RMS) value to fundamental residual RMS, where harmonic components are excluded in the TWE calculation. For a specific window length, two TWE thresholds are set according to the IEEE standard C37.118.1 to divide the PMU measurement into 3 accuracy levels. Theoretical analysis and simulation tests show that the TWE is effective in accuracy-level evaluation. Two examples are given to illustrate the TWE applications of evaluating accuracy levels of PMU measurements.