WRAL-TV, Raleigh, N.C., reported Lowe, a former head coach at North Carolina State, is accused of failing to file state tax returns for 2009, 2010 and 2011.
Lowe, who has a home in Wake Forest, N.C., was the Wolfpack's coach from 2006 to 2011 and joined the Jazz's staff last year. He drew a $500,000 salary his last year at N.C. State
The 53-year-old coach had his unsecured bail set at $10,000 and had a court appearance set for March 19.
The Salt Lake Tribune reported Jazz spokesman said the team was aware of Lowe's arrest but had no comment.
WTVD-TV, Raleigh, reported Lowe had no comment as he climbed into a taxi outside his home Monday afternoon.
Lowe played for N.C. State's 1983 national championship team before going on to the NBA where he played for Indiana, Detroit, Atlanta, Charlotte and Minnesota.
His coaching career also includes stints as an assistant with Minnesota (three times), Cleveland and Detroit, and as head coach with the Timberwolves and Vancouver/Memphis.