Since the standards-based assessment practices required by the No Child Left Behind legislation, almost all students in the United States are "labeled" according to their performance on educational achievement tests. In spite of their widespread use in reporting test results, research on how achievement level labels are perceived by teachers, parents, and students is minimal. In this study, we surveyed teachers (N = 51) and parents (N = 50) regarding their perceptions of 73 achievement labels (e.g., "inadequate," "level 2," "proficient") used in statewide testing programs. These teachers and parents also sorted the labels according to their similarity. Using multidimensional scaling, we found labels used to denote the same level of performance (e.g., "basic" and "below proficient") were perceived to differ in important ways, including in their tone and how much achievement they convey. Additionally, some labels were perceived as more encouraging or clear than others. Teachers' and parents' perceptions were similar, with a few exceptions. The results have important implications for reporting results that encourage, rather than discourage, student learning.