A reality breakdown of the five Japanese proficiency levels!
1
N5
This is the most BASIC level and NOT the highest, contrary to popular belief of those unfamiliar with the JLPT levels. So just the VERY basics of Japanese are covered here.
2
N4
Those of us who're better than the basics must go for the N4 level. It is simple, yes, but starts covering everyday situations that might take while in Japan.
3
N3
It is the intermediate level, and challenges how much well versed you really are. There's casual Japanese involved, too. Clearing the N3 means that you can manage with everyday conversations in Japan.
4
N2
Though most stop with N3, any jobs with regard to Japanese needs a pass in N2! Its rather tough as its one of the highest levels. An N2 pass equals to you being ready to take on translation challenges. Not everyone passes in the first attempt.
5
N1
The HIGHEST is the N1. I've known Japanese teachers and common people who've tried attempting this level for years together--and passed later. It takes a lot of grit to pass it.