Numerical simulations of rail wear during sliding contact pose significant challenges owing to the complex coupling between thermomechanical contact loads, material properties, and profile changes. This study proposes a modeling approach for rail wear during sliding contact, using nonlocal peridynamic (PD) thermomechanics and a bond damage criterion based on ratchet failure. To facilitate test verification, a two-dimensional PD model for twin-disc testing with elastoplastic materials was developed, and numerical simulations and corresponding twin-disc testing were performed during wheel idling under different loads, idling speeds, and idling times. The PD model accurately predicted rail wear under all operating conditions, exhibiting excellent agreement with the test results, and thus validating the proposed method and supporting the ratchet failure mechanism. Subsequently, thermomechanical modeling of sliding contacts with different creepages was performed. The PD model predicted continuous wear along the contact surface, with an increase in wear depth corresponding to higher creepage values. As the contact temperature increased with creepage, thermal stress and thermal softening caused slight and sharp increases in rail plastic strain, respectively. Therefore, thermal softening is the main factor responsible for the significant increase in wear rate with temperature. Finally, wear results of the PD model and classical Archard’s wear model were compared. The PD models can capture variations in wear rates that are difficult to address using the Archard model.