Originally Posted by FBinNY

The bare minimum standard for a passably true wheel, is that it can clear reasonably adjusted brakes without ever rubbing. Better yet, pass closely adjusted brakes with room to spare on both sides.

On new wheels, I shot for 1/2mm TIR (total wobble), but for repairs 1-2mm is passable, if the wheel started in bad shape.

More important is radial alignment since you can feel high and low spots as you ride. Here I try for well better than 1/2mm, or to where the joint distortion is the worst spot. This applies to both new wheels and repairs.