The altercation started after Smith and another motorist were nearly involved in a collision. The two men engaged in a shouting match before Smith allegedly waved a gun at him.
After police concluded their investigation, Smith, 24, was charged with aggravated assault, which is a third-degree felony.
Police reportedly said Smith was cooperative during the investigation. He told the officers on the scene that he "displayed" the handgun because the other driver was being aggressive.
Smith was taken to Pinellas County Jail and later released on $5,000 bond.
"I apologize for any negative light that I may have placed on our football team and the entire Buccaneer organization," Smith said in a statement released by the Bucs. "However, it is not appropriate for me to comment any further on the specifics of this matter at this time."
Smith entered the NFL in 2001 as a third-round pick out of Akron. Smith played nickel cornerback for Tampa Bay's No. 1 ranked defense and secondary last season. He recorded 29 tackles and four interceptions during the regular season and added three picks during the post-season, including two interception returns for touchdowns during Tampa Bay's 48-21 win over Oakland in Super Bowl XXXVII.
Pewter Report was the first to report last month that the Bucs plan to give Smith a shot to win its vacant starting free safety spot next season. Smith will compete with safeties John Howell and Jermaine Phillips for that job.