This is code that i'm actually using in a production app.
It's in Swift and it also updates UITabBar.hidden var.
func scrollViewWillBeginDragging(scrollView: UIScrollView) {
    if scrollView.panGestureRecognizer.translation(in: scrollView).y < 0{
        changeTabBar(hidden: true, animated: true)
    }
    else{
        changeTabBar(hidden: false, animated: true)
    }
}
You can also use the other callback method:
func scrollViewDidScroll(scrollView: UIScrollView) {
    ...
}
but if you choose so, then you must handle multiple calls to the helper method that actually hides the tabBar.
And then you need to add this method that animates the hide/show of the tabBar.
func changeTabBar(hidden:Bool, animated: Bool){
    var tabBar = self.tabBarController?.tabBar
    if tabBar!.hidden == hidden{ return }
    let frame = tabBar?.frame
    let offset = (hidden ? (frame?.size.height)! : -(frame?.size.height)!)
    let duration:NSTimeInterval = (animated ? 0.5 : 0.0)
    tabBar?.hidden = false
    if frame != nil
    {
        UIView.animateWithDuration(duration,
            animations: {tabBar!.frame = CGRectOffset(frame!, 0, offset)},
            completion: {
                println($0)
                if $0 {tabBar?.hidden = hidden}
        })
    }
}
Update Swift 4
func changeTabBar(hidden:Bool, animated: Bool){
    guard let tabBar = self.tabBarController?.tabBar else { return; }
    if tabBar.isHidden == hidden{ return }
    let frame = tabBar.frame
    let offset = hidden ? frame.size.height : -frame.size.height
    let duration:TimeInterval = (animated ? 0.5 : 0.0)
    tabBar.isHidden = false
    UIView.animate(withDuration: duration, animations: {
        tabBar.frame = frame.offsetBy(dx: 0, dy: offset)
    }, completion: { (true) in
        tabBar.isHidden = hidden
    })
}