According to traditional Muslims Jizya means yearly taxation on non-Muslims living in Islamic state. The Jizya tax has been rationalized by traditional Muslims as a fee for protection provided by the Muslim ruler to non-Muslims, for the permission to practice a non-Muslim faith with some communal autonomy in a Muslim state.
There is only one verse which mentions the word Jizya.
9:29 Fight those who do not believe in Allah or the Last Day, nor do they restrict what Allah and His messenger have restricted, nor do they uphold the system of truth; from among the people who have been given the Book; UNTILL they give the compensation (Jizyata) with willing hands and they are overpowered.
This verse speaks of specifically those who attempt to violate peace treaties and thus should be neutralized and a recompense should be taken from them. This becomes evident when we read 9:17-29 in context.
The verse says “until they give the JIZYA with YADIN while they are belittled”
JIZYA = recompense or compensation
YADIN = any aide of power. This is why a “hand” is called YAD because it is a means of power.
Thus, the order in 9:29 is to fight them until they give the compensation with power while belittled.
This simply means neutralizing them and receiving any means of compensation for what happened. This may include war reparations, arresting them, community services, fining and so on.