Muhammad says Muslims in a position of strength should impose three choices on non-Muslims: 1) become Muslim; or 2) pay protection money for the right to live precariously, as a second-class citizen; or 3) be killed

In Sahih Muslim, a canonical hadith collection:

Book 019, Number 4294
...the Messenger of Allah [Muhammad] (may peace be upon him)...would say: Fight in the name of Allah and in the way of Allah. Fight against those who disbelieve in Allah. Make a holy war...When you meet your enemies who are polytheists ["polytheists" to Islamic scholars broadly includes Christians and Jews, because of, for example, Quran 9:30 and 9:31] invite them to three courses of action. If they respond to any one of these, you also accept it and withhold yourself from doing them any harm. [1] Invite them to (accept) Islam; if they respond to you, accept it from them and desist from fighting against them. ...[2] If they refuse to accept Islam, demand from them the Jizya [protection money non-Muslims must pay to Muslim overlords for the right to live, and as an indication of Muslim superiority and non-Muslims' "state of subjection" spoken of in Qur'an 9:29. For proof, see also this]. If they agree to pay, accept it from them and hold off your hands. [3] If they refuse to pay the tax, seek Allah's help and fight them...