With the realization of 5G system which will become a fact by 2020, there is a great demand to achieve the Tactile Internet system. Tactile Internet system should handle a 1 ms communication latency, which is the main problem of the system realization. One of the proposed system structures to achieve such latency is to build the system based on the multilevel cloud architecture and the 5G network structure. In this work, we build a system model for a multi-level cloud based Tactile Internet system. The model is used to find the system latency and evaluate the system performance. The proposed system is simulated and the results show that the system will achieve a lower latency than other known architectures. The proposed model also reduces the overall network congestion. It can be used to optimize the number of clouds in the system to achieve the best system performance.