The 25-year-old was arraigned and has been formally charged with one count of domestic assault, one count of assault and one count of malicious destruction of property, said a statement from police in East Lansing, Michigan.
Police were called after a report of domestic assault at an East Lansing hotel at around 1am on Thursday.
Bond was set at $5,000 and the Charlotte News and Observer newspaper reported that Taylor had been released from Ingham County jail.
"The Charlotte Hornets were made aware of the incident involving Jeffery Taylor early this evening," the club said in a statement. "The organization is in the process of gathering more information and doing our due diligence. This is a matter that we take very seriously."
Taylor, a 25-year-old measuring 201 centimetres, was born in Norrköping in eastern Sweden. He is about to enter his third season in the NBA.
Taylor defending league superstar Lebron James. Photo: AP
He missed most of last season after rupturing his right Achilles tendon in December.
His arrest comes just days after NBA Commissioner Adam Silver said the league was reviewing its policies on domestic violence in light of the public relations crisis the NFL is facing over its handling of several such cases involving high-profile players.
That included the NFL's clumsy handling of Ravens running back Ray Rice, who knocked his future wife unconscious in a casino elevator in February.