Firstly jizyah is the tax which non Muslims are forced to pay during the wars for protection. Whenever there was an Islamic state(a real one, not like ISIS) and a military threat came into existence,and a military threat was posed and interfered with the peace of the Muslim state, the Government would then put this tax on the people. It is a main outcome when a religious war takes place. When Nabi(Saw) prophesied that the latter day messiah(As) would abolish jizya, this referred to the end of religious wars which would occur by his coming. This shows us that during his time, Muslims would have religious freedom and be allowed to practice and preach their faith, as we see we can today.No one would wage a war against Islam, which is why Islam would not have to do jihad of the sword in reply. During the time of the Messiah(As) Islam was to be spread by the pen and through peace and this does not in any way mean that Islam spread by the sword before, rather shows that Muslims would not be attacked in the way they were before which is why they would not need to wage the sword. For example they write a lot of bad things about Muhammad (saw) and Islam, and the way we should reply is by writing back and answering their allegations against Islam and Ahmadiyyat.
The Holy Prophet(saw) stated: یضع الحرب
He would bring an end to religious wars.(Fathul Bari)
This was also fulfilled in the Promised Messiah(as). He himself states:
“I have come to you with an order:jihad with the sword has ended from this time forward, but the jihad of purifying your souls must continue. I do not say this of my own accord. This is indeed the will of God. Recall the hadith from Sahih Al Bukhari which honors the Promised Messiah by saying Yada ul harb. That is to say, when the Messiah(as) comes he will put an end to religious wars.Accordingly, i command those who have joined my ranks to refrain from all such thoughts, to purify their hearts, to foster sympathy, and to be compassionate towards the suffering”