The Japanese Language Proficiency Test has five levels. They are N1, N2, N3, N4, and N5. The most comfortable level is N5, and the problematic level is N1.
N5 measures the level of understanding of Japanese that is mainly learned in class whereas N1 is related with the knowledge of Japanese in a much broader sense along with its application in everyday life.

Starting from N5:

The primary objective in this level is to develop the ability to understand some basic Japanese.

• Reading: The candidate is able to understand and read some basic Japanese sentences and expressions written in hiragana, katakana, and basic kanji.
• Listening: The candidate can hear and understand conversations about topics that are encountered in daily life. He can pick the necessary details from short discussions.

N4:

The prima ry objective in this level is similar to N5, but the contents are in depth.

• Reading: The candidate can read and understand passages written in kanji.
• Listening: The candidate can comprehend the conversations that are dealt with in daily life and understand the contents provided that they are spoken slowly.

N3:

The primary objective in this level is to understand Japanese used in everyday situations.

• Reading: The candidate can understand necessary things like Newspaper headlines. He can learn and comprehend written materials with specific contents concerning everyday topics. Furthermore, he can read a bit difficult writings and understand the significant contents of it.
• Listening: The candidate can listen and comprehend conversations spoken at average speed.

N2:

The principal objective in this level is to understand Japanese used in daily life and a variety of circumstances.

• Reading: The candidate can read materials written clearly on a wide variety of topics and different commentaries in magazines and newspapers.
• Listening: The candidate can understand orally presented materials spoken naturally and in a variety of settings. He can grasp the main idea behind the content.

N1:

N1 is the hardest level of the Japanese language, and the principal objective is the ability to understand Japanese used in a variety of scenarios.

• Reading: The candidate can read complex writings, abstract writings on a variety of topics and understand both their contents and structures. The candidate can understand the intent of the writers as well.
• Listening: The candidate can understand orally presented materials like coherent conversations, news reports and is now capable of understanding their contents too.