The 47-year-old film star was taken into custody at about 11:30 p.m. on Friday and booked on suspicion of domestic abuse battery, disturbing the peace and public drunkenness, New Orleans Police spokesman Garry Flot said in a written statement.
Cage was ordered to appear in court on May 31.
According to the statement, Cage was observed arguing with his wife on a street in the city's French Quarter.
"(Cage) and his wife were standing in front of a residence that he insisted was the property the couple was renting," Flot said in the statement.
"She disagreed and Cage grabbed her by the upper arm and pulled her to what he believed was the correct address."
The actor then began striking cars and tried to get into a taxi cab, Flot said.
"At that point, an officer who had been flagged down by on-lookers drove up on the couple, immediately observed that Cage was heavily intoxicated and ordered him out of the cab, which prompted Cage to start yelling. The officers subsequently took Cage to Central Lock-Up," Flot said.
There were no visible injuries to Cage's wife, he said.
Cage, the nephew of film director Francis Ford Coppola, is best known for such films as "Raising Arizona," "Gone in 60 Seconds" and "National Treasure."