Rolling contact fatigue of railway rails not only severely deforms the surface material near the rail head, but also induces an anisotropy in the mechanical behavior due to work hardening and alignment of the microstructure along the shear direction. Cracks typically initiate in this region and propagate along the aligned microstructure. The fatigue behavior of rails is evaluated under uniaxial loading in the undeformed material state. However, this is not representative of the contact loading condition and material performance after years of service. Herein, the nonproportional multiaxial fatigue of as‐received and biaxially predeformed pearlitic rail steel R260 is investigated. Four material states are investigated, corresponding to the microstructure found at different depths from the severely deformed surface material at the rail head. A starting notch is machined by electrical discharge machining to control crack initiation and allow for comparable surface crack propagation measurements. The crack path is found to be strongly influenced by the degree of predeformation while the early surface crack propagation rate is found to be similar for all material states.